Gold Retreats After Breakout – What’s Next?
Gold prices (XAU/USD) fell on Thursday, hitting a three-day low of 3,298** as the precious metal tested crucial support near its recent break out level. Earlier this week, golds urged pasta**bull flag pattern**, confirming a bullish signal with a ** close above3,298**as the precious metal tested crucial upport near its recent breakout level. Earlier this week, golds urged pata**bull flag pattern**, confirming abullih ignalwitha**closeabove3,371 on Tuesday. However, sellers have since taken control, putting the breakout under pressure.
Key Levels to Watch
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Immediate Support: 3,275-3,275-3,298 (20-Day MA & trend channel top)
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Critical Breakdown Level: $3,269 (prior swing lows)
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Resistance: $3,371 (recent swing high)
Will the Bullish Trend Resume?
Despite the pullback, the broader uptrend remains intact. For the bullish momentum to regain strength, gold must:
✅ Hold above 3,275**(short-termtrendlinesupport)✅**Recapturethe20-DayMA(3,275**(hort-termtrendlinesupport)✅**Recapturethe20-DayMA(3,307) to signal a recovery
A close below 3,275 ** could in dicatea ** failed break out**, potentially leading to deeper losses. However, if gold stabilizes and rebounds, the next target remains the ** record high near 3,275 ** could indicate a **failed breakout**, potentially leading to deeper losses. However, if gold tabilize sand rebounds, the next target remain the ** record high near 3,500.
What’s Driving Gold’s Movement?
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Technical Correction: Profit-taking after a strong rally
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Dollar Strength: USD gains weighing on gold
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Fed Policy Expectations: Traders await clearer signals on rate cuts
Final Outlook: Bullish or Bearish?
While the short-term dip is normal in an uptrend, traders should monitor:
🔹 Price action around 3,275-3,275-3,298 (key support)
🔹 Potential bullish wedge formation (could override the flag pattern)
If gold holds support and rebounds, the rally could resume toward 3,500**.A**breakbelow3,500**.A**breakbelow3,269, however, may signal a deeper correction.
