Gold extends losses despite a weaker USD, lacks bullish momentum ahead of PCE Price Index

Gold remains under pressure, trading below $3,300 and marking a four-week low in early European trading. The Israel-Iran ceasefire continues to boost overall market risk sentiment, reducing demand for the safe-haven metal.

However, Fed rate cut bets and ongoing concerns over Fed independence are keeping the USD weak, which may help limit further downside for gold. Traders remain cautious, avoiding fresh bearish positions ahead of key US data.

The focus now shifts to the US PCE Price Index, the Fed’s preferred inflation gauge, due later today. The data is expected to offer clearer signals on the Fed’s policy path and drive the next move in both the USD and gold prices. 

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold remains under bearish pressure, currently forming a Bearish Flag pattern on the Daily chart, breaking below 55-day SMA. On the 4-hour chart, a consolidation breakdown is visible, reinforcing short-term downside bias. However, the 1-hour chart shows signs of a bear trap, indicating potential intraday short-covering from lower levels.

Weekly Trend: Neutral 

Intraday Trend/ Intraday Strategy: The bias is Neutral to Bearish, with a preference to sell on resistance levels and buy near key supports for short-term pullbacks. Gold turns weaker below 3284, with further downside likely if this level fails to hold.

Major Support: 3289, 3284, 3276

Major Resistance: 3202, 3310, 3321