GOLD – Bullish Bias Persists Above Broken Triangle’s Upper Boundary

Gold prices traded within a narrow range on Wednesday, maintaining a bullish bias following a shallow corrective dip on Tuesday.

The broken Fibonacci level at $3,355 (61.8% retracement of the $3,200–$3,120 pullback) has now turned into a solid support zone, effectively cushioning the downside. This area also protects the next key support at $3,328—the broken upper boundary of the previous triangle pattern, now reinforced by the 10-day moving average.

The daily chart retains a bullish structure, strongly supported by the thick Ichimoku cloud, with its top aligned near the psychological $3,000 level. However, waning positive momentum and the Stochastic oscillator entering overbought territory are early signals that demand caution.

Despite these warning signs, near-term sentiment is expected to stay positive as long as the price holds above the broken triangle resistance. A period of consolidation could precede a renewed push toward the $3,400 zone—marked by Tuesday’s high, psychological significance, and the 76.4% Fibonacci retracement. A break above this level would expose the all-time high near $3,500.

The bullish case is further supported by favorable macro fundamentals. Ongoing uncertainty surrounding U.S. trade policy—particularly negotiations with China and the EU—as well as the recent doubling of metal import tariffs, continue to stoke concerns over global trade instability.

Meanwhile, mixed U.S. economic data add to investor caution. Two of three major U.S. labor reports for May have disappointed (JOLTS: 7.39M vs. 7.11M forecast; ADP: 37K vs. 111K forecast), increasing anticipation for Friday’s key Non-Farm Payroll (NFP) release.

Additionally, growing anxiety over U.S. fiscal sustainability—amid ballooning debt levels fueled by recent spending packages and tax cuts—adds to the bullish outlook for gold. These factors, combined with heightened geopolitical tensions, continue to lend strong support to the yellow metal.

Res: 3372; 3392; 3400; 3410
Sup: 3343; 3328; 3318; 3310