- Weakness of the USD puts gold removal loss to the test of trendline resistance at $3,325.
- Optimism around a potential Fed rate cut has diminished the attractiveness of the US dollar.
- XAU/USD shows a general bearish trend, dropping below $3,325 and $3,345.
Gold (XAU/USD) saw some interest just under the $3,300 mark on Wednesday, recovering a bit from recent declines. The retreat in US harvests benefits precious metals, yet the general outlook remains bearish, aiming for $3,325, which is under trendline resistance.
The latest Federal Reserve meeting minutes sparked optimism for at least one rate cut in 2025, impacting a five-day rise in US Treasury yields. As a result, the USD fell sharply, allowing gold to bounce back.
Technical Analysis: XAU/USD meets resistance at $3,325 and $3,345
The four-hour chart indicates that the price is testing the resistance level of the downtrend line from the peak in mid-June at $3,325. The relative strength index (RSI 14) has crossed above 50, suggesting some bullish momentum, but a breach past this level, along with the July 4th high and seven-person highs at $3,345, is essential for a shift in trend.
The subsequent target appears to be around $3,400, closing the upward attempts noted on June 17th, 18th, and 22nd, with the resistance on top from June at $3,452.
Conversely, if prices are rejected from their current standing, potential support might be found at $3,285, $3,245, and $3,205 from May 20, prior to lows observed on May 28th and June 30th.
