XAU/USD Tug of War – Uptrend Still Dominant

Gold (XAU/USD) hovers around $2,900 after a strong rally. This reflects cautious sentiment amid a weakening USD and concerns over trade tensions. On the 4H chart, gold trades within a sideways channel, with key support at $2,853 and strong resistance at $2,943.

The weakening USD and the Trump administration’s tariff policy continue to underpin gold. However, profit-taking pressure could see prices correct before the uptrend resumes.

If XAU/USD breaks the $2,943 resistance with strong momentum, the uptrend could extend to $3,000. Conversely, prices could correct to the support zone if selling pressure increases before bouncing back.