GOLD → Retest of support within an uptrend

XAUUSD is forming a liquidation phase as part of the previously mentioned bullish wedge pattern. Bulls were unable to break through the 3400 mark, and due to uncertainty, the price has entered a correction phase...

On Monday, gold fell to $3350, echoing the bearish sentiment in Asian trading, as $3400 remains an unattainable level. The pressure is intensified by weak data from China (PPI −3.6%), profit-taking and expectations for the US inflation report, as well as uncertainty in US-China trade negotiations and microchip policy. Optimism is being held back by expectations of Fed policy easing after negative statistics and forecasts of rate cuts, as well as possible meetings between US and Russian leaders. All this reduces demand for gold as a safe haven asset.
The focus is on the local trading range of 3400-3350. Before a possible rise, the market may test a strong support zone...

Resistance levels: 3376, 3405
Support levels: 3358, 3350, 3345

At the moment, we are seeing a retest of 3358 and a false breakdown, with a fairly weak reaction to the zone. In the short term, gold may test 3350-3345. A false breakdown and the bulls holding the price above this zone could bring the price back up...

Best regards, R. Linda!