Gold Surges Over 300 Pips – Ready to Break 3,500 USD?

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Hello traders! Yesterday, gold skyrocketed by more than 300 pips, pushing price into the mid-zone of the long-term bullish channel. This move sets the stage for the uptrend to continue in both the short and medium term.

Yesterday, the Core PCE index for July rose 0.3% MoM, in line with expectations and matching the previous month. On a YoY basis, Core PCE climbed from 2.8% to 2.9%, signaling that inflationary pressures remain. This data reinforces market expectations for a 25 bps Fed rate cut at the mid-September meeting.
With the Fed leaning toward easing, the USD could weaken, thereby supporting further bullish momentum for gold.

Technical Outlook (8H):
Gold remains in its bullish channel, with yesterday’s candle closing above EMA 34 & EMA 89, confirming the uptrend.
Support: ~3,405 USD (channel bottom + horizontal zone).
Resistance: ~3,500 USD, where a mild pullback may occur before aiming higher.
Short-term setup: Price could retest 3,405 USD before bouncing back to challenge 3,500 USD and potentially breaking out further.

In summary: Gold maintains its bullish trend, with 3,405 as the key level and 3,500+ as the target. Upcoming US data will be crucial in determining whether a true breakout follows.

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