XAUUSD: Key Reversal Zone or Deeper Correction Ahead?

XAUUSD: Key Reversal Zone or Deeper Correction Ahead?
Gold enters the new trading week balancing on a technical and macroeconomic knife’s edge. After a steep decline, prices are testing critical liquidity zones — just as geopolitical tensions and US economic uncertainty intensify.

🌍 Macro & Fundamental Outlook
📰 Middle East Tensions Rising Again: Israel has signaled potential strikes on Tehran after Iran allegedly violated a ceasefire agreement. Such developments usually support gold as a safe-haven asset.

📊 US Economic Signals Are Mixed: Last week’s PMI and housing data point toward an economic slowdown. If this week’s Core PCE data softens, expectations for a Fed rate cut in September will grow — likely weakening the USD and lifting gold.

🏦 Global Demand for Gold Still Strong: Central banks, particularly from China and India, are continuing their gold accumulation, reinforcing long-term bullish fundamentals.

📉 Technical Analysis (H1–H4)
Gold is still trading within a downward channel but is now approaching a strong demand zone around 3276, a level that has triggered rebounds in the past.

EMA 34 – 89 – 200 indicate bearish momentum, but RSI is showing bullish divergence — hinting at a possible reversal or short-term bounce.

Price action around key support and resistance levels will be crucial this week.

✅ XAUUSD Trade Setup
BUY ZONE: 3278 - 3276 | SL: 3270 | TP: 3282 - 3286 - 3290 - 3294 - 3298 - 3302 - 3305 - 3310
SELL ZONE: 3367 - 3369 | SL: 3375 | TP: 3364 - 3360 - 3356 - 3352 - 3348 - 3344 - 3340 - 3330 - 3320

📌 The Buy Zone lies within a historical liquidity pocket — ideal for a potential rebound if geopolitical risks rise or USD weakens.
📌 The Sell Zone is near a key Fair Value Gap (FVG) and local resistance — strong confluence for short opportunities on a bounce.

🧭 Final Thoughts
XAUUSD is facing a pivotal moment. With both geopolitical events and major US economic data on the horizon, traders should prepare for volatility. Patience, technical discipline, and proper SL/TP management will be key to navigating this environment successfully.