Inverted Head & Shoulders in Gold signals bullish breakout amid Fed cut expectations

Gold saw renewed dip-buying on Friday, rebounding from recent lows after Thursday’s pullback from a 1.5-week high. The metal remained supported as the US Dollar struggled to extend post-NFP gains, with concerns over President Trump’s massive spending bill fueling fears of a worsening fiscal outlook. Ongoing trade uncertainty also added to gold’s safe-haven appeal.
However, stronger-than-expected US jobs data led markets to scale back July Fed rate cut expectations, while an overall positive risk sentiment limited further upside. Still, gold maintained a firm tone heading into the European session and looked set to post its first weekly gain in three weeks.
XAU/USD TECHNICAL OVERVIEW
Technical Structure: Gold is showing signs of strength after finding consistent support at the 55-day SMA, helping to limit downside pressure. Price action remains just below the 20-day SMA, indicating that bulls are attempting to regain control but face immediate resistance on the upside. A notable Inverted Head & Shoulders pattern is developing on the 4-hour chart, signaling a potential medium-term bullish breakout if neckline resistance is cleared.
Weekly Trend: Neutral
Intraday Trend/ Intraday Strategy: The intraday trend remains bullish and favours the approach of Buying on Breakouts and Buying on Support
Major Support: 3327, 3311, 3300
Major Resistance: 3345, 3360, 3370
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