Gold holds ground above $3300 but lacks direction as traders await for FOMC meeting minutes

Gold holds ground above $3300 but lacks firm intraday direction heading into Wednesday's trading session, fluctuating between mild gains and losses amid conflicting fundamental drivers.
The US Dollar continues to strengthen for a second straight day, supported by better-than-expected US macro data released on Tuesday. A risk-on sentiment in equity markets further adds pressure on the safe-haven metal, acting as a headwind for gold prices.

However, lingering geopolitical uncertainties, including potential trade policy shifts under former President Donald Trump, and mounting concerns over the US fiscal outlook, help limit downside pressure. Furthermore, growing market expectations of Fed rate cuts in 2025 may temper USD strength and offer support to non-yielding gold.

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold has witnessed a breakdown from the Hanging Man candlestick on the daily chart, a classic bearish reversal signal, indicating potential weakness at higher levels. Price is currently hovering near the 20-day SMA and 8-week SMA, both acting as dynamic resistance levels, further reinforcing downside risks. The metal is exhibiting consolidation on 4-hour, suggesting indecision and a buildup for the next directional move. The consolidation zone lies beneath key resistance levels, hinting at a possible continuation lower if support breaks. On 1-hour, a bear flag pattern is developing, typically a bearish continuation signal. A breakdown from this pattern would likely accelerate selling pressure toward lower support zones.

Intraday Trend/ Intraday Strategy: The intraday bias remains bearish to neutral and favours the strategy of Selling on Rise till 3315 and Selling on Break of Support. 

Weekly Trend: Neutral

Major Support: 3291, 3286, 3273 
Major Resistance: 3315, 3323, 3340