Gold – Key $3300 Support Zone in Focus as Market Seeks Directional Clues
Gold Holds at $3300 Support as Market Awaits Next Move
Gold extended losses for a second consecutive day on Wednesday, sliding to the $3300 support zone in early trading, continuing a sharp pullback from Tuesday’s record high at $3500.
The retreat from the all-time high was driven by strong profit-taking, as $3500 had been widely viewed as a potential 2025 target by many analysts. Additionally, overbought conditions on the daily chart intensified the selling pressure, dragging the metal down nearly $200 in just 24 hours.
Adding to the downside momentum, President Trump’s sudden shift to a more conciliatory tone on trade with China—signaling significantly lower tariffs—and his assurance that there were no plans to dismiss Fed Chair Jerome Powell, eased market tensions and weighed further on gold’s appeal as a safe haven.
However, the pullback found support at the $3300 area—a key confluence of psychological level, the 38.2% Fibonacci retracement of the $2956–$3500 rally, and the rising daily Tenkan-sen—prompting a modest rebound that suggests near-term bearish momentum may be fading.
A daily close above $3300 would hint at a healthy correction within a broader bullish trend and could offer bulls a chance to reenter at more attractive levels. For confirmation, however, gold needs to regain and close above $3371 (23.6% Fibo) and $3400 to reassert bullish control.
Technical indicators remain mixed. The RSI has exited overbought territory, and the 14-day momentum continues to drift lower—both signaling room for further downside and keeping the risk of extended weakness alive.
Near-term direction will depend heavily on whether market sentiment shifts decisively in response to Trump’s softer stance. At the same time, lingering geopolitical risks and a worsening global economic outlook (with the IMF recently lowering its US and global growth forecasts) are likely to keep safe-haven demand for gold underpinned.
If the metal holds above $3300 and regains upward momentum, a renewed push toward $3500 could follow, with a break above that opening the way toward the $4000 mark—already eyed by several market participants.
Res: 3371; 3400; 3430; 3500
Sup: 3300; 3285; 3228; 3200
