Gold pauses at crossroads amid Dollar strength and trade deal buzz

Gold remains under pressure for the third consecutive session, slipping to weekly lows near $3,330 amid renewed US Dollar strength and fading safe-haven demand. The metal's bearish tone is fueled by mixed US yields, progress on the trade front, and a generally upbeat risk sentiment, which continues to divert flows away from gold.

Despite the downside, the potential for further losses may be limited as traders await clarity on the Fed’s rate outlook ahead of next week’s FOMC meeting. Uncertainty over political pressure on the central bank and geopolitical tensions, such as the Thailand–Cambodia dispute, could offer near-term support to gold prices.

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold is showing signs of recovery after rebounding strongly from a key trendline support on the daily chart. While the price continues to trade just below the 20-day Simple Moving Average (SMA), the short-term structure has turned constructive. A bullish pinbar formation on the 4-hour chart and a bullish flag pattern on the 1-hour chart suggest growing upside momentum, supporting the case for a potential breakout.

Weekly Trend: Neutral

Intraday Trend/ Intraday Strategy: The intraday bias remains bullish to neutral and favours the approach of Buying on Support and Buying on Breakouts. 

Major Support: 3330, 3310, 3285

Major Resistance: 3350, 3375, 3397