Gold has been on a tear lately, but the precious metal is closing in on a major resistance zone that previously held as support.
Are sellers about to hop in?
Check out these inflection points on the daily time frame!
Gold (XAU/USD) Daily Chart Faster with TradingView
After selling off for the first half of this year, gold looked ready to turn things around as it pulled higher from the $4,000 major psychological mark and has been rallying over the past week.
However, the precious metal could hit a major roadblock as it approaches the former support zone around the $4,500 handle, which happens to line up with other inflection points.
Can it sustain the climb as the U.S. gears up to print its highly-anticipated CPI report?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. dollar and gold, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Expectations are for softer headline and core inflationary pressures year-on-year, possibly extending the dollar’s decline while markets unwind hawkish Fed expectations.
Should this be the case, gold could set its sights higher, potentially advancing to the next upside targets at R4 ($4,530.97) then R5 ($4,650.39).
On the other hand, resistance levels holding around the area of interest, 50% Fib, R3 ($4,424.55) and the dynamic inflection points at the moving averages, could drag XAU/USD back to the swing low near $4,000 or at least to nearby support zones.
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!
This gold setup leans heavily on Fibonacci retracements, pivot point resistance levels, and moving averages to map out where sellers might step in. Premium members can read our lesson:
📖 How to Identify Reversals and Retracements
Reading this helps you understand how Fibonacci levels, pivot points, and trend lines are used to spot potential turning points, why a former support zone can flip into resistance, and how to judge whether a pullback like this is a temporary retracement or the start of a full reversal.
And if you’re not a Premium subscriber yet, now’s a good time to sign up.
With Babypips Premium, you get full access to School of Pipsology lessons that help you understand not just where a level sits on the chart, but which method, Fibonacci, pivot points, or trend lines, gives you the most confidence that a reversal or retracement is actually playing out.
