Spot gold (XAU/USD) was knocked lower after hitting the $2,700 mark earlier this month.
But buyers showed up at a key support zone, increasing the odds of the yellow metal extending its 2025 gains.
Are you seeing what we’re seeing in the 4-hour time frame?
Gold (XAU/USD) 4-hour Chart by TradingView
In case you missed it, Friday’s solid U.S. jobs report boosted bets on the Fed keeping rates higher for longer, sending U.S. bond yields and the dollar on rallies.
This has put some pressure on gold. While global growth worries and geopolitical risks still support the shiny metal, the rising appeal of U.S. bonds and the dollar has dented its demand.
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!
As you can see, XAU/USD hit $2,700 but got knocked down to the $2,660 area before buyers stepped in.
What makes the level interesting is that $2,660 is close to the 50% Fibonacci retracement of gold’s last upswing, the Pivot Point level in the 4-hour time frame, AND a mid-range support that’s been an area of interest since November 2024.
If buyers hold the line and trading stays above $2,660, XAU/USD could gear up for another run at $2,700. A weaker U.S. dollar or renewed concerns about global growth might even push gold toward its $2,720 highs from November and December.
That said, there’s also room for more downside.
XAU/USD could break below the $2,650 psychological handle if the dollar regains momentum or risk sentiment improves. In that case, watch for lower levels like $2,640 or even $2,610 to come into play.
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!
