Gold price retreats from record highs as buyers take a breather

Gold prices hover just below all time high level heading into Monday's early session following President Trump's decision to exempt China based smartphones and electronics from USA's sweeping reciprocal tariffs. However, on Sunday, he reinforced his administration's stance that the exemption from these tariffs on China will be short lived.

Meanwhile, the US Dollar remains under pressure near its lowest level since April 2022, weighed down by weakening economic confidence and growing expectations of Fed rate cuts. With the Fed likely to cut rates at least three times this year, Gold may remain supported as lower yields boost demand for the non-yielding asset.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold maintained its upward momentum with a strong weekly close, reinforcing the broader bullish structure. The formation of Three White Soldiers on the daily chart signals strong buying pressure. On the 4-hour chart, the price action shows consolidation, indicating a brief pause before a possible breakout on the upside. Meanwhile, the 1-hour chart reveals RSI divergence, suggesting a temporary pullback as buyers might take a pause amid slightly overbought conditions. 

Intraday Trend: Bullish

Intraday Strategy: Buy on dips near key supports and sell near resistance zone

Weekly Trend: Ultra Bullish

Major Resistance: 3237, 3246, Undefined

Major Support: 3220, 3210, 3200