XAUUSD – The Bullish Momentum Continues, Targeting 3,700 USD?Hello traders, as we can see, gold surged strongly yesterday , breaking through key resistance and closing near the highs. Safe-haven flows continue to pour into the precious metal, while the USD weakens on expectations that the Fed may soon ease its policy. This development further strengthens the belief that gold remains firmly in an uptrend.
The US PPI report forecast shows producer inflation dropping sharply from 0.9% to 0.3% . This signals that the Fed may cut rates sooner, weakening the USD and further boosting gold. Amid global uncertainty, gold continues to stand out as the safe-haven asset of choice.
On the H4 chart, XAUUSD is still moving within an ascending channel, consistently forming Higher Highs and Higher Lows. The price is currently trading around 3,647 USD, holding firmly above both EMA34 and EMA89. The 3,630 USD zone has become a key support level, where a slight pullback could occur before the next leg higher.
The most reasonable strategy is to Buy on dip around 3,630 – 3,635 , with a stop loss below 3,610. Short-term targets lie near 3,680, while the extended target is 3,700 USD – a major resistance level where profit-taking pressure may intensify. With this setup, the risk-to-reward ratio is highly attractive.
Wishing you all successful trades!
