XAUUSD – Pressure becoming evident at higher price levels

After an impressive recovery streak, gold may soon have a chance to approach the 3,404 resistance zone – the top of the current ascending channel. This is not only the upper boundary of the technical structure but also an area where price has been rejected multiple times before, making it a likely profit-taking point or a trigger for renewed selling pressure.

In addition, the newly released U.S. PMI data exceeded expectations, signaling that manufacturing activity is recovering well. This has prompted the market to reassess expectations for Fed policy easing – pushing up both bond yields and the USD, while gold – which yields no interest – is facing pressure.

If buyers fail to produce a clear candle close above the 3,404 zone, a pullback scenario toward the 3,324 support area becomes highly plausible. This will be a “strength-testing” zone for both sides in the upcoming sessions.