Gold holds steady below one-week high; builds momentum for next leg-up

Gold trades in a narrow range with mild fluctuations between $3330-$3340 during European hours on Wednesday, staying below the one-week high hit on Tuesday. A modest recovery in the US Dollar, which has snapped a seven-day losing streak, along with a positive risk tone, is limiting gold’s upside as safe-haven demand softens.

However, persistent uncertainty over President Trump’s tariff policies and concerns over the fiscal impact of his tax-and-spending bill continue to weigh on the USD. Expectations of a potential Fed rate-cut cycle ahead also help cushion downside risks for gold, keeping traders cautious ahead of the US ADP jobs report later today.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold price is showing a mixed but slightly positive bias in the short term. On the daily chart, a bullish candle has formed, though the metal continues to trade below the 20-day SMA while holding above the 55-day SMA, reflecting an indecisive yet supportive structure. The 4-hour timeframe shows ongoing consolidation, while the 1-hour chart displays a bullish flag pattern, hinting at potential upside continuation if resistance levels break.

Weekly Trend: Neutral

Intraday Trend/ Intraday Strategy: The intraday trend remains largely Bullish to Neutral, traders may look to buy near support levels and sell at resistance

Major Support: 3326, 3312, 3300
Major Resistance: 3345, 3357, 3375