GOLD (XAU) - The Safe Haven
Gold has paused after a huge rally, and savvy traders are eyeing a classic corrective move before the next leg up. Here’s what you need to know—fast.
After more than a year of steady gains and a breakout to fresh all-time highs near $3,450, gold has taken a breath, and that pause may be the gift savvy traders have been waiting for. As central banks tiptoe around interest-rate policy and the U.S. dollar flexes its muscles, gold is carving out a textbook A-B-C correction. Whether you’re a long-time bullion believer or a tactical swing trader, this pullback offers a clear setup: defined risk, juicy upside, and a roadmap drawn by decades of market history. Let’s unpack the levels, the catalysts, and the playbook.
In a nutshell
Gold topped near $3,450, now correcting.
Key support sits between $3,290 and $2,850.
Short around $3,330, stop ~ $3,350.
Flip to long on exhaustion signals in the low-3Ks.
Why We’re Watching Gold
Recent peak near $3,450 in May triggered an A-B-C Elliott correction.
Fed’s “higher for longer” rhetoric and a stronger dollar are pressuring prices.
Central bank buying keeps a floor under gold around $3,000.
Key Technical Levels
Resistance: $3,340–3,350 (recent highs, 20-day MA)
Support targets:
$3,290 (daily mid-Bollinger band, swing low)
$3,250 (50-hour MA)
$3,100–2,850 (50–62% retrace of big rally)
What Traders Are Doing
Enter short near $3,330, place stop above $3,350
Scale out partial position at $3,290, move stop to breakeven
Scout for long setups in the $3,100–2,850 zone on reversal signals
The Fundamental Backdrop
Inflation is cooling but still above target, supporting real yields and capping gold’s upside
Emerging-market central banks continue modest gold purchases
Fed policy surprises or geopolitical flare-ups could trigger sharp moves
Next Steps
Monitor the U.S. dollar index, break above 102 may extend the pullback
Watch daily RSI and StochRSI for oversold bounces
Be ready to switch to a long bias once the C-wave shows exhaustion
Stay nimble, manage risk, and let the setup guide your entries and exits. Good luck!