Gold prices (XAU/USD) regained momentum on Friday during the Asian session, climbing above the $3,300 mark after pulling back from a two-week high the previous day. Ongoing concerns over the deteriorating US fiscal situation, renewed US-China trade tensions, and persistent geopolitical uncertainties continue to bolster gold’s appeal as a safe-haven asset. Additionally, fresh selling pressure on the US dollar provided further tailwinds for gold.
Although mostly positive US economic data released on Thursday initially buoyed market sentiment, the relief was short-lived as worries about the expanding US fiscal deficit took precedence. Alongside this, growing market expectations that the Federal Reserve will cut interest rates at least twice this year have pressured the dollar further and increased demand for non-yielding gold.
Despite volatility, gold is on track to register its best weekly gain in over a month, supported by solid fundamental factors favoring bullish traders.
Technical Analysis: Uptrend Remains Intact
From a technical standpoint, the overnight pullback from the two-week high shows signs of underlying rebound strength near the 23.6% Fibonacci retracement level of the recent rally that started from last week’s monthly low.
Positive momentum indicators across hourly and daily charts continue to support the ongoing uptrend that has persisted for over a week. As such, dips are expected to attract buying interest, particularly near the $3,260–$3,258 zone, which aligns with a key support confluence involving:
The 38.2% Fibonacci retracement level
The 200-period simple moving average (SMA) on the 4-hour chart
A clear break below this support zone could trigger technical selling, potentially driving prices down to the 50% retracement level around $3,232, and then to the psychological $3,200 round number.
Resistance Levels to Watch
On the upside, immediate resistance is anticipated in the $3,320–$3,325 range, ahead of the overnight swing high near $3,346. Continued buying momentum beyond this could push gold toward the medium-term resistance cluster between $3,363 and $3,365, which may help bulls retake the significant $3,400 level.
A sustained move above $3,400 would reinforce the recent bullish outlook and potentially open the door for further upside gains.
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