FX.co ★ CFD | XAU/USD, GOLD

If these support levels hold firm, the yellow metal is likely to remain within a consolidation phase, fluctuating between support and resistance. However, if these levels are breached, it could signal a deeper correction, prompting traders to reassess their positions and potentially adjust their strategies. Despite short-term volatility and the possibility of further price pullbacks, the broader outlook for gold remains positive. A combination of factors, including a weakening U.S. dollar, expectations of Federal Reserve rate cuts, and ongoing geopolitical uncertainties, continues to provide strong support for gold in the medium term. Investors should keep an eye on crucial data points, such as the U.S. Consumer Price Index (CPI), and stay attuned to developments in global geopolitical events, as these could significantly influence market sentiment and gold prices. For now, gold’s longer-term bullish trend remains intact, positioning it as a valuable asset in an increasingly uncertain economic environment. H4 CHART ANALYSIS:

A decisive break below key support levels could signal further downside risk for the yellow metal. Such a break would be characterized by a strong move, such as a long green candle that pierces through the support level and closes near its high, or a series of three consecutive green candles breaking the level. If these conditions are met, it could mark a pivotal point for gold, suggesting deeper declines. In this case, the price could extend its corrective decline below the $2,590 mark, potentially reaching the 20-day Simple Moving Average (SMA) near the $2,630 level. On the flip side, if gold manages to break above resistance at $2,680, it could trigger a rally, pushing prices toward the $2,700 region.