XAUUSD – Breaks Support Line, Risk of Deeper Correction

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On the H4 timeframe, gold has officially broken below the ascending trendline formed since mid-May, after several successful retests. This is a clear sign that the short-term uptrend is losing momentum.

Following the trendline breakdown, price is currently making a mild pullback, retesting the confluence zone of EMA34–EMA89 around 3,323 to 3,336 USD. However, if this zone continues to act as resistance, the pullback pattern will complete and open up the possibility of further decline toward the next support area around 3,264 USD – which previously held price well.

Moreover, gold remains under pressure due to the US dollar’s strong rebound amid expectations that the Fed will maintain high interest rates. Hot CPI and PPI forecasts are delaying rate cut hopes, further weighing on gold prices.

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