Gold faces pressure amid renewed US-EU trade talks and a strengthening U.S. dollar.
Gold extended its decline on Tuesday, breaking below the $3,300 mark as a confluence of factors weighed on the metal. A stronger U.S. dollar and a rebound in risk appetite prompted investors to rotate out of safe-haven assets, while profit booking following recent highs added to the selling pressure. The market also responded to easing geopolitical tensions after President Trump announced a delay of the proposed 50% tariff on the European Union until July 9, reducing the immediate appeal of gold as a hedge. Looking ahead, investors remain focused on key economic data releases and signals from major central banks for further direction.
XAU/USD TECHNICAL OVERVIEW
Technical Structure: Gold is currently displaying signs of weakness on multiple timeframes. On the daily chart, a Hanging Man candlestick pattern has emerged, suggesting potential exhaustion of the recent bullish move. Price remains above the 20-day SMA, but momentum appears to be softening. On the 4-hour chart, Gold is hovering near channel support, indicating a critical juncture—either a rebound or a breakdown. The 1-hour timeframe is showing a bearish flag formation, typically a continuation pattern signaling further downside if support breaks.
Intraday Trend/ Intraday Strategy: The intraday bias remains bearish and favours the strategy of selling on support breakdown and selling on rise.
Weekly Trend: Bullish
Major Support: 3280, 3270, 3252
Major Resistance: 3307, 3329, 3348
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