Gold Fails to Break Resistance in Risk-On Market Environment

[Redator]

Gold had been climbing steadily despite the overall risk-on sentiment this week. However, this morning’s stronger-than-expected Non-Farm Payrolls report failed to give the safe-haven asset any additional lift.

The rejection at higher levels suggests a lower likelihood of a retest of the all-time highs, which remain at $3,500 - although with this year's volatility, everything is possible.

The Bullion, which was up 3% at its weekly highs is now up only 1.26% - Let's dive into a technical analysis as we stand on the current pivot.

Gold Technical Analysis from Daily to Hourly charts

Gold Daily Chart

/media/images/Screenshot_2025-06-06_at_10.49.51AM.width-1400.png

XAUUSD Daily Chart, June 6, 2025. Source: TradingView

Gold broke out of its descending daily channel on Monday, supported by early-week US Dollar weakness. However, the streak of consecutive bearish daily candles is undermining momentum toward its all-time highs.

The Daily RSI is neutral though above its 50 level, which still gives it a somewhat bullish bias.

The MA 50 on the daily is still catching up to the rise that occured through the latter part of May.

Standing right at the current pivot of $3,330, we still have to observe if a prolongation of the rejection leads to a re-entering of the Daily Channel.

Read More: US equities rally on NFP beat

Gold 4H Chart

/media/images/Screenshot_2025-06-06_at_11.03.36AM.width-1400.png

XAUUSD 4H Chart, June 6, 2025. Source: TradingView

Gold prices are looking to retest the higher band of the Daily Channel, located at 3,310 as it rejects the 4H MA 20.

One hurdle to look at that may slow a potential down-move within the Channel would be the MA 200 located at the confluence with the 3,300 psychological zone.

Prices which are contained within these 2 key MAs infer some indecision, however we may expect some more clarity throughout the weekly close.

A bounce on the upper channel line will hint to another test of the 3,375 to 3,390 Resistance zone, while a break below the 200 MA points toward the 3,275 to 3,290 Support Zone

Watch the market sentiment, as a further move towards all-time highs in US stock indices may just add to more pressure for the Bullion.

Gold 1H Chart

/media/images/Screenshot_2025-06-06_at_11.19.47AM.width-1400.png

XAUUSD 1H Chart, June 6, 2025. Source: TradingView

Gold is entering an oversold level as we approach the immediate support zone located between 3,305 and 3,315.

The descent is still fairly strong, therefore watch for any particular switch in market sentiment:

A positive tone may give more strength to sellers, while a risk-off move towards the week-end will provide support; things are still unclear for now but the current mood is positive.

We can observe some harmonic patterns towards the correction in the precious metal as the move up happened after an inverted Head and Shoulders, touching the $3,400 psychological zone before reverting on the Trump-Xi conversation headlines.

We are now observing another potential measured move on the way down (purple squares).

Also watch for potential consolidation around the 3,330 pivot.

Safe Trades!

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© {CURRENT_YEAR} OANDA Business Information & Services Inc.