GOLD - EXPECTING A PULLBACK BEFORE RESUMING UPTREND

5月22日

Symbol - XAUUSD

Gold is breaking out of its descending price channel and approaching the key area of interest at 3346. A potential false breakout above resistance could prompt a short-term correction before the upward trend resumes.

Gold is advancing for the third consecutive session, trading above the 3300 level, supported by a weakening US dollar and escalating geopolitical tensions. Investor demand for safe-haven assets is increasing amid concerns surrounding US fiscal policy, ongoing trade frictions with China, and the possibility of a military strike by Israel on Iran. Additional support for gold stems from market expectations of a Federal Reserve rate cut and diminished outlook for the dollar.

From a technical standpoint, the price is approaching a significant order block and resistance zone between 3345-3360. Since the session opened, the upward momentum appears to have reached its limit, suggesting that a retest of this key level could result in a false breakout and subsequent pullback. Nonetheless, given the prevailing macroeconomic conditions, any corrective move may be temporary, with the broader bullish trend likely to persist thereafter.

Resistance levels: 3346, 3360, 3409
Support levels: 3288, 3265, 3245

Gold has re-entered the buy zone. However, the fundamental backdrop remains volatile. A reduction in economic risks could prompt renewed downward pressure. At present, attention is centered on the 3346–3360 range, where a false breakout remains a probable scenario, potentially preceding further gains.

5月22日

交易结束：到达目标

Pullback is done.
3245 to 3288, Now It will be interesting to see whether gold resumes its upward trend following the current retracement or continue its fall. My bias remains bullish at this stage, as the price action continues to reflect a positive outlook.

5月23日

注释

CMP 3364

yesterday in this trading idea, I discussed Gold, specifically the fact that support at 3288 would prevent the market from falling.
Overall, all factors were described in the idea, and as we can see, the bulls were confident in this zone.
A perfect false breakdown of support occurred. The rebound formed a continuation of the trend and resulted in a 600+ pips increase. :)