Gold Price Prediction📊 Technical Structure
FOREXCOM:XAUUSD Gold retreated from the multi-week high at $4,285–4,286, pulling back toward the $4,270–4,275 area as buyers took profit near the upper resistance. Despite the short-term dip, the overall structure remains bullish, with price still holding above the major support and trading within a rising framework.
Price may retrace toward the $4,254–4,250 support zone, which aligns with the short-term trendline. A potential “W-shaped” rebound from this zone could send XAU/USD back toward the $4,280–4,284 resistance zone. As long as gold holds above $4,250, the bullish structure remains intact. A break below $4,245 would invalidate the setup and expose deeper downside.
🎯 Trade Setup (Bullish Bias)
Idea: Buy on a pullback into support, targeting a retest of resistance.
Entry: 4,254 – 4,250
Stop Loss: 4,245
Take Profit 1: 4,280
Take Profit 2: 4,284
R:R Ratio: ~1 : 3.26
If price does not retrace into the support zone, an alternative is to buy only after a strong rebound above 4,266–4,268.
🌐 Macro Background
Gold is seeing mild pullback mainly due to risk-on sentiment as equity markets extend gains, reducing safe-haven demand. However, the downside remains limited because:
The Federal Reserve delivered another dovish rate cut.
Lower interest rates weaken the USD and reduce the opportunity cost of holding gold, providing medium-term support.
Powell highlighted uncertainty in the labour market, reinforcing expectations that more policy easing may come next year.
Geopolitical tensions persist, with Russia-Ukraine peace talks stalled, keeping safe-haven demand from collapsing completely.
Overall, risk appetite is pressuring gold short-term, but the broader fundamental backdrop remains supportive for bulls.
🔑 Key Technical Levels
Resistance Zone: 4,280 – 4,284
Support Zone: 4,254 – 4,250
Invalidation Level (bullish setup fails): 4,245
📌 Trade Summary
Gold is correcting from multi-week highs but remains within a bullish structure. A pullback into 4,254–4,250 is a favourable zone to seek long opportunities, aiming for 4,280–4,284. The bullish bias remains valid unless price breaks below 4,245.
⚠️ Disclaimer
This analysis is for reference only and does not constitute trading advice. Trading involves significant risk, and proper risk management is essential.
