Spot gold surged in early trading before pulling back, hitting a high of $3,370.58 before retreating to fluctuate around $3,350. After a 3% single-day plunge on Wednesday, the metal rebounded 1.83% on Thursday to close at $3,348.50/oz, driven by a weaker dollar and bargain-hunting demand.
The price is now firmly above the $3,300 threshold, with cautious optimism prevailing in the market. U.S. Treasury Secretary warnings about prolonged trade tensions continue to bolster safe-haven demand, while growing bets on a Fed rate cut in June provide fundamental support.
Technically, the daily chart shows an uptrend, with prices holding above the MA55 and MA14 averages. The RSI (64.37) nears overbought territory but remains moderate, while the MACD golden cross signals sustained bullish momentum. On the 4-hour chart, gold has stabilized above $3,300, with narrowing MACD histograms hinting at the end of a correction and potential short-term bottoming.
Key Levels:
Resistance: A break above $3,380–3,385 could pave the way for $3,390 and a retest of $3,400+.
Support: A drop below $3,300 may trigger a retreat toward $3,260.
Outlook: While gold may consolidate in the near term, medium-to-long-term momentum remains bullish.
Trading Suggestion:
Buy on dips near $3,340–3,345, stop loss at $3,332, target $3,378.
Strict risk control advised due to high volatility.
(Note: All prices in USD/oz unless specified.)