Gold News: Bullish Tone Softens, $3,228.38 – $3,164.23 Now Critical Target Zone

Gold Slips Below Resistance as Trade Optimism Caps Momentum

Gold pulled back over 1% on Friday, extending its decline from Tuesday’s record high of $3,500.20. The market is trading below a resistance pivot at $3,380.20, following confirmation of a daily closing reversal top. With the rally stalling, traders are watching closely to determine whether this correction will attract dip-buying or extend further toward key support levels.

At 11:58 GMT, XAU/USD is trading $3295.07, down $53.91 or -1.61%.

China Tariff Signals Pressure Safe-Haven Demand

The selling pressure was triggered by reports that China is considering tariff exemptions on some U.S. goods. That spurred risk-on sentiment across broader markets, sending the dollar higher and reducing demand for safe-haven assets like gold. European equities climbed on the same headlines, further weighing on bullion. Gold’s inverse correlation with the dollar remains a headwind in the near term, especially with improved prospects for U.S.-China trade talks.

Buy Strength or Buy the Dip

From a technical standpoint, the market is consolidating just below $3,380.20—now a clear resistance level. A sustained move above this line could reignite bullish interest and signal fresh upside.

On the downside, support sits in the $3,228.38 to $3,164.23 retracement zone. This is the area dip buyers are watching.

The longer-term trend remains supported by the 50-day moving average at $3,049.65, giving bullish traders room to reenter if the market pulls back further.

At this point, the strategy comes down to trader preference: buy into strength above $3,380.20 or wait for a dip into support.

Fed Stays on Hold, Real Rates Still Favor Gold

Federal Reserve officials signaled no urgency to change policy, keeping rates steady as they assess tariff-related impacts on the economy. With real rates still low and inflation expectations anchored, the backdrop remains broadly supportive for gold. Traders are also monitoring physical demand from India, which could pick up if prices correct further.

Gold Prices Forecast: Bullish Bias Holds, Watch Key Levels

Despite recent softness, the long-term gold trend remains intact. A break above $3,380.20 could invite stronger buying interest and resume upside momentum. Alternatively, a pullback toward the $3,228.38–$3,164.23 range may offer value opportunities. The bullish bias stays in place as long as gold holds above the $3,049.65 support line, but near-term moves will depend on trader conviction at these key levels.

More Information in our Economic Calendar.