Gold Rebounds Off Major Support, Eyes Fresh Catalysts for Next Move

Gold Price Inches Higher After Testing Key Support, But Recovery Remains Fragile

Gold prices edged higher in early European trading after slipping to a fresh one-week low. The metal broke below strong support around the $3300 level—a key psychological threshold reinforced by the daily Kijun-sen and the top of the Ichimoku cloud—but has encountered resistance in this area.

The modest rebound follows sharp losses over the past two sessions, during which gold fell nearly $100. While such a bounce is a natural technical reaction, the sustainability of the recovery remains uncertain, given the conflicting signals from both technical indicators and geopolitical developments.

Daily momentum continues to weaken, suggesting limited bullish strength. However, the daily cloud—anchored at $3280 and supported by the Kijun-sen—is expected to provide a firm base as long as the price remains above this zone.

On the macro and geopolitical fronts, the outlook is mixed. Optimism from ongoing U.S.–China trade talks offers hope that a major trade conflict may be averted or its impact reduced. Yet, this is counterbalanced by escalating tensions in Ukraine and persistent unrest in Gaza, which could undermine broader market sentiment.

The current recovery has tested initial resistance at $3324 (daily Tenkan-sen). A sustained break above this level is seen as the minimum requirement to maintain a bullish bias and open the way for a test of the upper pivot at $3348—the 50% Fibonacci retracement of the $3403 to $3293 decline.

Failure to hold above the $3300–$3280 support zone would leave the downside exposed, potentially triggering further losses toward $3245 (May 29 higher low) and the psychological $3200 mark.

Resistance Levels: 3335, 3348, 3361, 3377
Support Levels: 3295, 3280, 3245, 3200