Gold steadies near key support zones, buoyed by Fed commentary and safe-haven demand
Gold prices appear to be stabilizing after a recent retreat, signaling a potential end to the short-term pullback phase. XAU/USD is trading near crucial support levels, suggesting bullish momentum may resume if current conditions hold.
Despite facing resistance near $3,400, gold has managed to find footing as buyers step in at lower price zones. Technical indicators show price action aligning with a broader uptrend, reinforcing the outlook for a recovery in the near term.
Fed Signals Support for Bullish Sentiment
Recent dovish remarks from Federal Reserve officials have eased concerns over aggressive monetary tightening, creating a more favorable backdrop for gold. “Expectations of a less hawkish Fed stance are helping sustain market confidence,” analysts note.
Ongoing Uncertainty Fuels Safe-Haven Demand
Rising geopolitical risks and lingering economic uncertainty continue to drive investors toward safe-haven assets. Gold, often viewed as a hedge against instability, has benefited from this shift in sentiment.
Key Technical Levels in Focus
Market attention is now centered on several support areas:
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$3,350: Aligns with the 21-day EMA and the 38.1% Fibonacci retracement
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$3,330: A former support zone attracting renewed interest
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$3,300–$3,283: A wider demand region signaling stronger price defense
These levels are seen as critical for maintaining the current bullish structure. A break below could trigger further downside, while sustained buying interest may pave the way for another test of the $3,400 resistance area.
Outlook: Buy-the-Dip Strategy in Play
With the technical outlook stabilizing and supportive fundamentals in place, many traders are eyeing opportunities to re-enter long positions. “As long as gold holds above $3,345–$3,350, the broader uptrend remains intact,” experts suggest. A successful bounce from these levels could reopen the path toward $3,400 and beyond.