GOLD - Correction and retest of the 4460 resistance level

Sep 3

XAUUSD continues its rebound after the false breakdown of the 4,300 support level. The fundamental backdrop remains mixed, but selling pressure is still present



The dollar is stagnating, potentially due to intervention from the Bank of Japan. The correction in the Dollar Index is giving gold room to recover. The key event is Friday’s NFP report. A weak report could support a further recovery in gold, while a strong report could bring selling pressure back. The 4,460 level remains the nearest resistance, with 4,300 acting as support.
Drivers:
Upside: weak NFP data on Friday, further dollar weakness, lower yields, technical rebound.
Downside: strong NFP data, hawkish Fed rhetoric, stronger dollar, renewed rise in oil prices

Resistance levels: 4,466, 4,480
Support levels: 4,300

The long squeeze of the 4,300 support zone has triggered a rebound, which has developed into a stronger move amid the dollar correction.
Ahead lies the 4,466–4,480 resistance zone. A short squeeze in this area could trigger a downside pullback, potentially pushing gold back into the range ahead of the NFP release.
The retest of this resistance zone and the market’s reaction to it will help determine the medium-term direction

Best regards,
R. Linda.

Sep 3

Note

Alternative Scenario:

Technically, gold is facing resistance at 4434 and has failed to break through it on its second attempt. There is a possibility of a correction toward the liquidity zone at 4400 before a rise toward the resistance level of 4466.

Sep 4

Trade active

Sep 5

Trade closed: target reached

+1000 pips