Key Highlights
- Gold started a fresh decline from the $3,450 resistance.
- A key bearish trend line is forming with resistance at $3,360 on the 4-hour chart.
- WTI Crude Oil prices dipped sharply below the $68.00 support.
- The US GDP could contract by 0.2% in Q1 2025.
Gold Price Technical Analysis
Gold prices failed to extend gains above $3,450 and reacted to the downside. There was a steady decline below the $3,400 and $3,380 support levels.
The 4-hour chart of XAU/USD indicates that the price settled below the $3,350 level and the 100 Simple Moving Average (red, 4 hours). The decline was such that the price spiked below the $3,300 level and the 200 Simple Moving Average (green, 4 hours).
On the downside, initial support is near the $3,295 level. The first key support is $3,275. The next major support is near the $3,450 level. The main support is now $3,230. A downside break below the $3,230 support might call for more downsides. The next major support is near the $3,200 level.
On the upside, immediate resistance is near the $3,335 level. The next major resistance sits near the $3,350 level. The main barrier could be $3,360.
There is also a key bearish trend line forming with resistance at $3,360 on the same chart. A clear move above the $3,360 resistance could open the doors for more upsides. The next major resistance could be $3,400, above which the price could rally toward the milestone level of $3,450.
Looking at WTI Crude Oil, the bears took control and were able to push the price below the $68.00 support zone.
Economic Releases to Watch Today
- US Initial Jobless Claims – Forecast 245K, versus 245K previous.
- US Gross Domestic Product for Q1 2025 – Forecast -0.2% versus previous -0.2%.
- US Durable Goods Orders for May 2025 – Forecast +8.5% versus -6.3% previous.
