Gold Breaks Above $3400 Before Easing on Profit-Taking 22/7/2025

Gold prices posted a strong rally in the previous trading session, aligning with the bullish expectations outlined in the latest technical report. The metal surpassed the target level of $3,376, reaching as high as $3,402 per ounce during early trading today.

Technical Outlook – 4-Hour Timeframe:

Intraday price action shows signs of a slight pullback, primarily due to a pause at the key psychological resistance level of $3,400, along with normal profit-taking after the sharp advance. Additionally, the Relative Strength Index (RSI) is indicating overbought conditions, suggesting that the market may consolidate or correct slightly before resuming its upward momentum.

Probable Scenario – Bullish Continuation:

The broader bullish trend remains intact as long as the price holds above:

• $3,360, and more importantly,
• $3,353

Continued consolidation above $3,400 would further strengthen the upside bias, with potential targets at:

• $3,411
• $3,435

Alternative Scenario – Bearish Correction:

If the price fails to maintain support above $3,353, this could trigger a short-term correction, targeting key support levels near:

• $3,320

Market Catalyst:

All eyes are on Federal Reserve Chairman Jerome Powell’s speech today, which could lead to significant price volatility depending on policy signals or tone.

Caution:

Risk remains elevated due to persistent geopolitical and macroeconomic uncertainty. All scenarios are possible, and prudent risk management is strongly recommended.

Disclaimer: Trading in CFDs involves risks, and all scenarios are possible. This analysis is not investment advice but rather an interpretation of the current technical landscape for gold.

S1: 3353.00	R1: 3411.00
S2: 3319.00	R2: 3435.00
S3: 3295.00	R3: 3469.00