Gold Price Analysis: Bulls testing bear's commitments at last resort resistance

The price of gold has moved up to test a key resistance structure.
A 1:8 R/R trade setup example has been triggered on the move as the last resort for the bears.

Ross J Burland FXStreet

Gold prices are testing the bear's commitments and resilience on failed downside price action.

Gold and DXY technical analysis

A bullish case for the USD has been in the making considering a number of intermarket implications and price analysis:

As for gold, in previous analysis, it was stressed the dollar was in the driver's seat and to monitor for a 5th wave to the upside.

The chart above shows that the dollar is not going down without a fight.

If the support holds in the DXY, then this can be beneficial to the following downside analysis on gold and subsequent trade setup:

The chart above is offering an illustration of how a 1:8 risk to reward trade to the downside can be placed with a stop-loss protecting against a follow through to the upside.

A break of the resistance opens risk back to the upside.

This analysis is a continuation of yesterday's setup which resulted in a breakeven outcome with the price moving adversely above structure and the target being moved to the entry point to protect capital.

Gold Price Analysis: XAU/USD bears taking over below structure for 1:3 R/R prospects

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD bulls seem hesitant below 0.7050 ahead of RBA on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.

USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold struggles to build on recovery from YTD low as Fed hike bets cap gains

Gold kicks off the new week on a positive note, snapping a two-day losing streak and reversing part of Friday's heavy losses to sub-$3,900 levels, or its lowest since October 2025. The optimism over a potential diplomatic breakthrough to end the US-Iran war caps the safe-haven US Dollar, and offers some support to the commodity. Meanwhile, US Federal Reserve rate hike bets remain firmly on the table amid oil-driven inflation concerns and might act as a headwind for the non-yielding yellow metal.

Dogecoin risks deeper slide as whales diverge

Dogecoin hovers around $0.075 on Monday after falling for the fifth consecutive week since the end of September. Santiment data shows diverging whale activity, as large holders reduce their positions while smaller whale wallets accumulate tokens. Meanwhile, weakening on-chain metrics and a deteriorating technical outlook suggest that DOGE could remain vulnerable to further losses.

Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.