Gold extends losing streak to three days, dragged by Dollar rebound

Gold slid for the third consecutive day heading into Thursday's trading session, dropping to a two week low near $3221 due to a confluence of factors like profit-taking, Dollar comeback and market positioning ahead of US Non-farm payroll report. 
Gold reached record highs in April 2025, driven by strong investor demand and macroeconomic uncertainty. Following such a sharp rally, it is common for large institutional investors to lock in profits, leading to a natural pullback in price. This is a normal market move called a technical correction, where prices temporarily decline, allowing the market to stabilize before potentially resuming the upward trend.
Furthermore, the U.S. Dollar has reached a two-week high, diminishing demand for gold as investors shift their focus to the stronger currency. This has added additional downward pressure on the yellow metal, contributing to its intraday decline.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold is currently facing a breakdown of the NR5 candlestick pattern on the daily chart, indicating a contraction in volatility and potential for further downside. Additionally, a symmetrical triangle pattern has broken down on the 4-hour chart, signaling a continuation of the bearish trend. The price is now trading at the 11-day low, reinforcing the downward pressure. Furthermore, a breakdown of the Head and Shoulders pattern at the $3260 level has added to the  bearish momentum. 

Intraday Strategy/ Intraday Trend: The intraday bias remains Bearish and favours the strategy of selling on Support Breakdown and selling at Resistance. 

Weekly Trend: Neutral

Major Resistance: 3238, 3250, 3260

Major Support: 3221, 3212, 3194