Gold May Undergo Short-Term Correction Near Resistance Levels

Jun 6

📊 Market Overview:
As of June 6, 2025, gold prices have surged, trading around $3,373 per ounce, up $26.63 from the previous session . This increase is driven by weaker-than-expected U.S. job data, with initial jobless claims rising to 247,000, surpassing the forecast of 236,000 . This has heightened expectations that the Federal Reserve may consider cutting interest rates in the near future.

📉 Technical Analysis:
• Key Resistance Levels: $3,390 – $3,430
• Nearest Support Levels: $3,340 – $3,300
• EMA: Gold prices are currently above the 09 EMA, indicating a sustained upward trend.
• Candlestick Patterns / Volume / Momentum: The RSI on the 4-hour chart is at 58.27, suggesting that while bullish momentum persists, the market is approaching overbought territory .

📌 Outlook:
Gold may experience a short-term correction if U.S. employment data is strong, reducing expectations for Fed rate cuts. However, the long-term uptrend remains supported by safe-haven demand and central bank purchases.

💡 Suggested Trading Strategy:
SELL XAU/USD at: $3,430
o 🎯 TP: $3,400
o ❌ SL: $3,440
BUY XAU/USD at: $3,330
o 🎯 TP: $3,360
o ❌ SL: $3,220

Jun 8

Trade active

Gold broke the 3330 support as expected and is now at 3309, price may continue to decline in the short term as it is below RSI 09 and more news is needed next week to clarify the trend