Gold Faces Key Resistance – Will the Uptrend Continue?

📊 XAU/USD Daily Technical Outlook – April 10, 2025

Gold has recently seen a strong rally, reaching an all-time high of $3167 per ounce. However, it encountered significant resistance at the upper boundary of its ascending channel, leading to a sharp pullback after the release of strong U.S. employment data, which boosted the dollar and exerted selling pressure on gold.

Currently, gold is trading around $3050, with key support levels at $2956, $2860, and $2790, which could act as potential bounce points if the decline continues.

📈 Current Market Structure:

After reaching the all-time high, the price has corrected lower. As it approaches the support levels mentioned above, the market may see fresh buying opportunities if these levels hold strong.

🔹 Key Resistance Levels:

$3100: Immediate resistance. A break above this level could signal a resumption of the uptrend.
$3167: All-time high. A breakout above this level would open the door for further gains.
🔸 Key Support Levels:

$2956: First support. The price may bounce at this level if it holds.
$2860: Major support. A failure to hold above this level could lead to further declines.
$2790: Strong support. A drop below this level would signal a shift in the market's direction.
📐 Price Action Patterns:

As the price approaches key support levels, there could be reversal patterns forming, indicating a potential price bounce. It’s crucial to monitor the price action at these levels to spot potential entry opportunities.

🧭 Potential Scenarios:

✅ Bullish Scenario:
If gold manages to hold above $2956 and bounce, the uptrend may resume toward the resistance levels mentioned above.

❌ Bearish Scenario:
If gold fails to maintain the key support levels, the correction could continue, with further declines toward lower support levels.

📌 Conclusion:

Gold is currently testing crucial support levels. Monitoring how price behaves at these levels will be key to determining the next direction. Traders should keep an eye on any economic developments that may affect market sentiment.

💬 What’s your outlook for Gold? Will it continue its uptrend or experience further corrections? Share your thoughts below.