Lingrid | GOLD Weekly Outlook: Anticipating Short-Term Pullback for OANDA:XAUUSD by Lingrid

Lingrid | GOLD Weekly Outlook: Anticipating Short-Term Pullback

market dropped from the resistance zone, forming a double top. The PCE inflation data triggered a pullback, leading to a 2% decline from the highs—similar to the decline we saw around two months ago. On the weekly timeframe, the price formed a long-tailed bar, signaling a rejection candle, and ultimately closed below the previous weekly high.

Additionally, the price broke and closed below the upward trendline that had supported the market since the beginning of February. This breakout suggests a pause in the bullish momentum. On the daily timeframe, the market formed an engulfing candle at the resistance zone, indicating that the price may retrace toward the 2820 and 2830 levels.

We’ve seen seven consecutive bullish weeks. Typically, after such strong momentum, the market either moves sideways or experiences a quick pullback. Given that there are few USD-related news events next week, I expect the market to potentially push lower. However, due to concerns about tariffs, there is also a chance the price could consolidate around the current zone before pushing higher. In any case, we must remain responsive to price action as it unfolds.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻

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Gold initially opened higher with a gap, but quickly retraced to fill it. Currently, price action is testing a critical level at 2900. If the price breaks and closes below Friday's low, we could see an ABCD pattern pullback develop. Looking ahead, I expect price might make a short-term push toward the 2915 level, then bearish if it meets resistance there. Another possibility is consolidation within a triangle formation, with price oscillating within previous day's trading range. My overall bias is a short-term retracement toward last week's low area. My goal is support zone around 2840

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