Article by: ETO Markets

Gold (XAU/USD) faces selling pressure during Thursday's Asian session, halting a three-day winning streak that saw prices reach their highest level since early November at around $…. The US Dollar (USD) looks to build on a recent bounce, supported by a recovery in US Treasury bond yields and bullish sentiment in equity markets, dampening demand for the safe-haven metal. While signs of abating inflation in the US revived expectations that the Federal Reserve may cut rates twice this year, uncertainty surrounding President Trump's tariff plans, which could spur trade wars and market volatility, offers support for gold. Investors remain cautious, awaiting more concrete details on tariffs from Trump and the release of US Weekly Jobless Claims, which could influence gold prices. The upcoming decisions from the Bank of Japan, Fed, and European Central Bank next week are also expected to inject volatility into the market, providing potential opportunities for gold price movements. 

From a technical standpoint, XAU/USD is likely to find immediate support around the $… area. A further decline could push prices towards the $… mark, and a decisive break below this level could lead to deeper losses, potentially targeting the $… zone before reaching the $… confluence, which includes the 100-day Exponential Moving Average (EMA) and a short-term ascending trend line. This area is expected to serve as a crucial pivot point for short-term traders. On the upside, the recent swing high around $… could act as resistance, and if broken, the price could challenge the all-time high near $…. A breakthrough above $…would signal a fresh bullish trigger and likely extend the uptrend observed over the past month.