Gold hovers at 200DSMA on its 4-Hour timeframe: Weakness likely to persist amid easing trade tensions

Heading into the early Asian session on Wednesday, Gold prices struggled to hold onto Tuesday's gains and slumped all the way to $3221. The recent de-escalation in US-China trade dispute due to a 90-day pause in their respective sweeping tariffs has weighed down on the yellow metal as market concerns eased. US President Donald Trump stated on Monday that he does not expect tariffs on Chinese imports to return to 145% following the 90-day pause. In a Fox News interview earlier on Wednesday, Trump described the relationship with China as "excellent," which boosted trade optimism. On the geopolitical front, Russia and Ukraine are scheduled for their first high level meeting since 2022 in Istanbul this week with the latter country's rising demand for a 30 day ceasefire. Any potential sign of a truce between the two nations would act as a headwind for Gold. However, a cooler annual inflation figure released from the US on Tuesday would raise the odds for a rate cut and help limit losses in the precious metal. 

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Formation of a Spinning Top Candlestick on the Daily chart of gold reflects indecision between buyers and sellers. Risk for the downside remains however prices show resilience at 200 Daily Simple Moving Average which emerges as a crucial dynamic support on the 4-Hour timeframe. Prices exhibit consolidation by forming a Bearish Flag at the 200SMA, break of which would accelerate the fall. Furthermore, Gold has formed a Double Top on the 1-Hour timeframe, adding to the bearish sentiment. 

Intraday Trend/ Intraday Strategy: The intraday trend remains Bearish and favours the approach of Selling on Rise and Selling of Break of Supports. 

Weekly Trend: Neutral

Major Support: 3226, 3216, 3207
Major Resistance: 3240, 3249, 3265