Gold Price Forecast: Can Bulls Sustain the Rally or Is a Pullback Ahead?

Summary:
• Gold price struggles near resistance as bulls eye $3,000. Key levels to watch. Will gold rally or face a pullback?

Gold prices hold firm above key support levels as market sentiment is mixed. While the yellow metal has benefited from a weaker U.S. dollar and trade war concerns, indicators suggest that upside momentum is losing steam. Can gold maintain its bullish structure, or is a deeper correction ahead?

Weaker USD, Trade War Fears Fuel Gold’s Safe-Haven Demand

• U.S. economic data shows signs of slowdown
• Consumer spending in the US dropped 0.2%, marking the largest decline in four years and raising concerns about economic growth.
• Tariffs on Canada and Mexico are expected to take effect this week, and the plans to double tariffs on Chinese imports assert gold’s safe-haven appeal.

Gold Price Chart Analysis – Key Levels to Watch

Resistance Levels:

• 2,942 – Current resistance where gold is facing hesitation; a breakout above this level could reignite bullish momentum.
• 2,985 – 3,000 (Psychological Zone) – Critical target area; a sustained move above this range could trigger a fresh rally toward new highs.

Support Levels:

• 2,866 – Immediate support level; holding above this zone is crucial for maintaining the bullish structure.
• 2,791 – Stronger support; a breakdown here would signal a shift in momentum, increasing the likelihood of further downside.
• 2,686 – 2,600 – Key demand zones; if the correction deepens, these levels could attract significant buying interest.

What’s Next for Gold?

XAUUSD’s strong rally suggests that the underlying demand remains intact, but signs of a possible cooldown are emerging. If bulls can push through $2,942, a retest of $3,000 is likely. However, failure to sustain gains could lead to a healthy correction, offering new entry opportunities for long-term buyers.

Despite near-term fluctuations, the broader outlook for gold remains bullish, with macroeconomic uncertainty and safe-haven flows continuing to provide support. Whether we see a breakout or a consolidation, gold remains one of the most closely watched trades in the market right now.