Will Gold Continue Its Strong Rally or Face a Pullback?

XAUUSD 02/07: Will Gold Continue Its Strong Rally or Face a Pullback?

📉 Technical Analysis – Gold Faces Short-Term Pullback After Strong Rally

Gold has been experiencing a clear rally in recent days, but it’s currently undergoing a brief correction. The price has recently dropped slightly, prompting traders to keep a close eye on key levels for potential reversal or continuation of the bullish move.

🌍 Macroeconomic Context – Factors Impacting Gold's Price

USD Fluctuation: The weakness in the US Dollar continues to affect gold prices, creating opportunities for the precious metal to maintain its upward movement.

Geopolitical Tensions: Ongoing global tensions, including the US-Iran conflict, act as a safe-haven factor, supporting gold demand.

Interest Rate Expectations: The market is closely watching for any changes in interest rate policies. Any future rate cuts by the Fed could further bolster gold's price.

📊 Technical Outlook (H1 – H4 – D1)

Short-Term Trend: On the H1 timeframe, the price of gold touched a key level near 3340. From there, the price began to experience a pullback. However, the upward momentum remains strong on higher timeframes.

Key Support Levels: The 3300 level remains a crucial support. If the price stays above this, there’s a chance for gold to continue rising towards higher levels.

Key Resistance Levels: 3360 and 3380 are critical resistance levels. If breached, gold could move towards new highs.

📍 Important Support and Resistance Levels:

🔺 Resistance: 3345 – 3360 – 3380 – 3400
🔻 Support: 3300 – 3290 – 3270 – 3250

💡 Trading Plan for Today, 02/07:

🔵 BUY ZONE:
📈 Entry: 3305 – 3303
📉 SL: 3297
💰 TP: 3315 → 3325 → 3340 → 3360

🔴 SELL ZONE:
📉 Entry: 3360 – 3362
📈 SL: 3368
💰 TP: 3350 → 3340 → 3320

📣 Conclusion:

Gold is showing signs of short-term correction but remains a strong asset due to geopolitical factors and monetary policies. Buying opportunities continue to be attractive at support levels, while key resistances will play a crucial role for any breakout. Keep an eye on the mentioned levels to capitalize on market movements.

Happy trading and best of luck to all traders!