Gold (XAU) Technical Analysis: Key Levels to Watch

Daily Chart: Correction Within Uptrend
Resistance: $3,150 (recent peak)

Support: $2,950 (critical level – break below could trigger deeper correction)

50-Day SMA acting as dynamic support

RSI retreating from overbought zone (70+), suggesting cooling momentum

4-Hour Chart: Ascending Channel Test
Gold remains in an ascending channel, but a drop below $3,000 may signal a bearish shift.

If $2,950 holds, bulls may regain control for a retest of $3,150.

US Dollar & Treasury Yields: Impact on Gold
DXY (US Dollar Index) Outlook
Rebound from 100.65 support, eyeing 103.50 resistance

Break above 104.70 could signal a bullish reversal, pressuring gold further.

10-Year Treasury Yields (TNX) Analysis
Yields broke below 4.10%, now testing 3.90%

Oversold RSI suggests potential rebound, but long-term trend remains uncertain.

Gold Forecast: Buy the Dip or Brace for More Losses?
🔹 Bullish Scenario: If $2,950 holds, gold could resume its uptrend toward $3,150+.
🔹 Bearish Scenario: A break below $2,950 may trigger a deeper drop toward $2,850.

Trading Strategy:
Short-term traders may look for pullbacks near $2,950 for potential long entries.

Aggressive sellers could target a breakdown below $2,950 with stops above $3,000.

Final Thoughts: Volatility Ahead for Gold Prices
With Fed policy uncertainty, USD strength, and shifting Treasury yields, gold remains in a corrective phase. Traders should monitor:
✅ US inflation & Fed rate expectations
✅ DXY breakout above 104.70
✅ Gold’s reaction at $2,950 support