Gold remains elevated near $3,381/oz, supported by geopolitical tensions—particularly rising Israel–Iran risks—and safe-haven flows ahead of this week's Federal Reserve decision. With investors cautious and risk sentiment mixed, bullion benefits from its defensive appeal. On the macro front, softening U.S. data (e.g., weak retail sales, declining industrial output) has bolstered expectations for Fed rate cuts, likely starting in September, further supporting non-yielding assets like Gold.
According to the World Gold Council, central banks are also expanding gold reserves amid rising global dollar uncertainty, creating a structural demand floor. However, analysts warn of near-term consolidation risks, especially as Citi projects a potential cooling toward $3,300 without fresh catalysts.
Technically, gold trades above $3,340 support, with resistance at $3,440–$3,450. A sustained break higher could target $3,500, while a close below $3,340 opens the door to a deeper retracement. Key catalysts this week include the Fed meeting and U.S. PCE data.
XAUUSD – D1 Timeframe
.png)
When price shot above the supply zone on the daily timeframe chart of XAUUSD, it set the tone for a bullish sentiment on Gold. As a result, the drop-base-rally demand zone at the base origin of the bullish impulse has been highlighted and will serve as the point of interest for a bullish reaction. In this case, the confluence of this demand zone and the trendline support is the basis for a bullish sentiment.
Analyst's Expectations:
Direction: Bullish
Target- 3430.32
Invalidation- 3292.45
CONCLUSION
You can access more trade ideas and prompt market updates on the telegram channel.
