Gold’s sitting just under the key $2,800 level and looks like it’s shaping up for a potential reversal.
Are gold bugs just catching their breath, or is this the start of a longer-term trend shift?
We’re taking a closer look at the 4-hour chart for clues!
Gold (XAU/USD) 4-hour Forex Chart by TradingView
Gold’s been delivering pips all week as traders steer clear of “riskier” assets amid global growth jitters and trade worries.
Meanwhile, the U.S. dollar is struggling to hold onto its gains, with markets already pricing in a Fed rate cut—and potentially more down the road—following Trump’s push for an “immediate” reduction in interest rates.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on gold and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
XAU/USD has bounced off the $2,750 level but is still struggling to break above the key $2,800 psychological zone.
What’s catching traders’ attention is the potential Head and Shoulders pattern forming on the 4-hour chart. The $2,750 level lines up as the “neckline,” while the $2,785 previous high marks the top of the “head.”
Are the gold bulls just catching their breath, or is this the beginning of a bigger bearish reversal?
Keep an eye out for bearish candlesticks around the area, which could draw in sellers and drag XAU/USD back down to the $2,750 previous support.
On the flip side, if gold extends its gains, we could see XAU/USD retest its $2,785 highs—or even make a run for fresh peaks and test the big $2,800 level!
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
