XAU/USD outlook: Gold holds in extended near-term range but overall picture remains bullishly aligned

Gold price stays in red on Thursday, with additional pressure seen from better than expected US retail sales which add to Fed’s stance of staying on hold with interest rates until getting clearer signals about inflation.

Fresh bears probed below the floor of recent range ($3320 zone) and approached key support at $3308 (top of thick rising daily cloud), which provided strong headwinds and pushed the price higher.

Gold faces two strong and opposite forces, Fed’s sit and wait policy which keeps interest rates at high levels and inflates dollar and growing uncertainty over tariffs, economic and geopolitical situation, which continue to fuel safe haven demand.

The yellow metal’s price has stayed in sideways mode for past couple of days, suggesting that two forces are in equilibrium and traders wait for more significant direction signals.

Larger bulls remain firmly in play, although short-term action is still holding in consolidative phase under new record high ($3500).

Near-term action remains within $3377/$3320 congestion (today’s dip under $3320 is likely to be short-lived), with break of either boundary to provide initial direction signals.

Daily studies remain bullishly aligned (positive momentum / daily cloud continues to underpin) that adds to positive outlook with prevailing expectations that current extended consolidation is just a pause before bulls accelerate again.

Solid supports at $3320/00 zone should keep the downside protected for renewed attacks at range tops ($3373/77), violation of which to open way for retest of targets at $3400 (psychological) and $3452 (June 16 top).

Res: 3377; 3392; 3400; 3452

Sup: 3320; 3308; 3300; 3282