Hello Traders! 👋

What are your thoughts on Gold?

Gold has rallied strongly over the past several days and is now approaching the key 4,400 resistance zone, an area where profit-taking and increased selling pressure could trigger a short-term correction.

From a technical perspective, a pullback after such an impulsive rally would be a healthy development. Price is expected to retrace toward the recently broken resistance zone, which is now likely to act as support. If this support holds, the broader bullish structure should remain intact, providing the foundation for the next impulsive move toward the upside targets highlighted on the chart.

From a fundamental perspective, today’s weaker-than-expected U.S. Non-Farm Payrolls (NFP) report reduced market expectations for a Federal Reserve rate hike at the September meeting. This has put downward pressure on the U.S. dollar and Treasury yields, creating a more supportive environment for gold and reinforcing the bullish outlook.

Overall, as long as price remains above the highlighted support zone, the broader trend remains bullish, and any near-term pullback is viewed as a healthy correction rather than a trend reversal. Therefore, the medium-term outlook for gold also remains bullish.
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