On June 2, 2025, XAU/USD (Gold Price / USD) reached around $3350 on the 1-hour chart, where its upward momentum has slowed. The recent gold market has been strongly influenced by global monetary policy trends and geopolitical risks, with demand for gold as a safe haven typically rising during risk-off periods. This chart represents a critical stage to examine the sustainability or potential reversal of the trend from a technical indicator perspective. More details about gold here.
Although the current price occasionally dips just below the short-term 20 EMA (blue line), it remains well above the 200 SMA (red line), suggesting that the long-term upward trend continues. The 20 EMA often acts as a support level, and whether the price breaks below this will be a key short-term signal. The large divergence from the 200 SMA also indicates strong trend continuation. While this moving average setup differs from a traditional "golden cross," it signifies a stable upward bias. More about moving averages here.
The shrinking MACD histogram and convergence of the MACD line and signal line indicate that the previously strong buying momentum is weakening. This suggests profit-taking from an overheated market or a short-term corrective phase, calling for careful attention to price movements over the next few hours. However, since the MACD has not yet crossed below the signal line, the end of the trend cannot be confirmed. Basics and applications of MACD.
The RSI, which once exceeded 70 in the "overbought" zone, has sharply declined to the 40 range. This indicates increased short-term selling pressure and a normalization from overheated conditions. Since RSI values below 30 are considered "oversold," the current level around 40 still leaves room for adjustment. Whether the market rebounds at this level or declines further is important for forecasting the next trend direction.
An ADX above 25 indicates the presence of a trend, but a slight decline in recent hours suggests the trend's strength may be weakening. This is a stage where the sustainability of the trend should be carefully assessed.
As the price hovers near $3350, volume has been trending lower compared to peak levels. Price increases without accompanying volume often indicate "resistance at highs," suggesting weakening bullish forces. Volume fluctuations are key to judging trend reliability and require careful observation.
| Level | Price | Meaning / Rationale |
|---|---|---|
| Short-term Resistance | $3360 | Resistance zone where price has bounced multiple times recently |
| Next Target | $3380 | Psychological milestone and near previous highs; breakout suggests strong upside potential |
| Short-term Support | $3340 | Support near the 20 EMA; maintaining this level may signal the end of correction |
| Medium-term Support | $3320 | Position of the 200 SMA; breaking below may signal medium-term trend reversal |
XAU/USD may have entered a short-term corrective phase within a strong upward trend, with a temporary momentum slowdown and price adjustment. The 20 EMA near $3340 is a critical support line; maintaining it will be key for continuation of the rise. Conversely, breaking below this line raises the likelihood of deeper corrections or range-bound trading.
On the upside, a breakout above the $3360 resistance would revive a bullish scenario aiming for above $3380. For trading strategy, confirming momentum recovery and volume increase while strictly managing risk is essential. Combine momentum indicator movements for comprehensive judgment.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All investment decisions are your own responsibility.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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