Gold (XAU/USD) found buyers right below the $3,300 level on Wednesday to regain some of the ground lost over the previous days. The retreat in US Yields is supporting the precious metal, but the broader trend remains bearish, while below the trendline resistance, at $3,325.
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The Minutes of the last Federal Reserve meeting heightened hopes of at least one rate cut in 2025, which snapped a five-day rally on US Treasury yields. The USDollar dropped across the board, and the yieldless Gold bounced up
A look at the 4-hour chart and we see price action testing the descending trendline resistance from mid-June highs, at $3,325. The Relative Strength Index (RSI 14) has crossed above the 50 level, showing a mounting bullish momentum, but the pair should breach above this level and the July 4 and 7 highs, at $3,345, to confirm a trend shift.
Above here, the next target would be the $3,400 area, which capped upside attempts on June 17, 18, and 22, and which closes the path to June’s top, at $3,452.
A rejection from the current level, on the contrary, is likely to seek support at the July 9 low, at $3,285, ahead of the May 28 and June 30 lows, at $3,245 and the May 20 low at $3,205.
Source: Fxstreet
