Gold Faces Resistance at 3,380–3,385: Downside Move PreferredHello everyone,
Looking at the H4 chart of OANDA:XAUUSD , gold is struggling to clear the heavy resistance zone between $3,380 and $3,385, which coincides with both a supply-based Fair Value Gap and the upper edge of the Kumo cloud. Price action here shows strong selling pressure, with short-bodied candles, long wicks, and muted volume, all of which suggest that buyers lack the conviction to push higher. Unless this zone is decisively broken, momentum points towards a short-term pullback, potentially dragging prices back to $3,355 and then $3,345.
From a macro perspective, today’s release of the US PCE inflation index will be critical. A stronger-than-expected print could reinforce expectations of tighter Fed policy, weighing on gold. Political uncertainty following President Trump’s move against a Fed governor adds another layer of volatility. Traders are now faced with a key question: does gold lose steam and retreat, or is a breakout towards $3,400–$3,425 still on the cards?
What do you think about this setup? Share your thoughts below!
