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      Gold Bulls Face Dual Resistance, Short-Term Technical Pullback Likely

      Eva Chen

      Commodity

      Summary:

      Gold extended its three-day rally to breach $4,240, underpinned by a softer USD and dovish Fed expectations. Technically, the key resistance zone could trigger profit-taking. Failure to clear $4,250 raises the risk of a pullback toward the $4,130 support area.

      Sell

      XAUUSD

      End Time
      CLOSED

      4228.30

      Entry Price

      4115.00

      TP

      4289.00

      SL

      4085.14 -86.19 -2.07%

      11330

      Points

      Profit

      4115.00

      TP

      4114.79

      CLOSING

      4228.30

      Entry Price

      4289.00

      SL

      Fundamentals

      During Thursday's European session, gold extended its rally for a third consecutive day and printed a three-week high. Bullion pierced the $2,040 level after President Trump signed a spending bill that ended the longest federal shutdown in U.S. history, a closure that had sidelined key Fed data releases. Also, broad-based dollar selling provided an additional tail-wind for the gold.
      Markets are wagering that, once the data flow resumes, a softer U.S. economic outlook will justify additional rate cuts, a scenario that benefits non-yielding gold. Nevertheless, dissension within the FOMC persists, with several officials favouring a pause in the easing cycle to keep inflation in check. Supported by robust central-bank demand and investors hedging against rising fiscal risk in major economies, gold futures have advanced more than 60% year-to-date.
      Gold Bulls Face Dual Resistance, Short-Term Technical Pullback Likely_1

      Technical Analysis

      During the European session on Thursday, gold extended its rally for a third consecutive day and printed a three-week high. Around the $2,240 zone, bulls are running into a double-barreled ceiling: the weekly open/close pivot of 13-20 Oct; the descending trend-line, triggering an immediate wave of selling pressure. With limited follow-through momentum, gold's upside appears increasingly constrained. Therefore, chasing longs at current levels offers an unfavorable risk/reward and warrants a cautious stance.

      Trading Recommendations

      Trading Direction: Sell
      Entry Price: 4254
      Target Price: 4115
      Stop Loss: 4289
      Valid Until: November 28, 2025, 23:55:00
      Support: 4208/4178/4149
      Resistance: 4244/4250/4264
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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