Gold consolidates to build up momentum ahead of major U.S. economic data release

​Gold prices declined to around $3300 per ounce on Wednesday influenced by a stronger U.S. dollar and easing trade tensions, which have reduced the metal's appeal as a safe-haven asset. The dollar's slight gain makes gold more expensive for foreign buyers, contributing to the price drop. This downturn follows U.S. President Donald Trump's recent executive order he signed to soften some of his automotive tariffs and secure a trade deal, signaling reduced global economic uncertainty. Despite these developments, analysts note that confidence in U.S. assets remains compromised.
Investors are now closely watching upcoming U.S. economic data, including the personal consumption expenditures (PCE) report, Q1 Gross Domestic Product report (Advance GDP) and Friday's non-farm payrolls to assess the Federal Reserve's interest rate trajectory. If inflation shows signs of moderation, the Fed may proceed with rate cuts. However, stronger-than-expected data could curb such expectations, potentially pressuring gold prices further.

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold formed an NR4 (Narrow Range 4) candlestick on the daily chart, indicating a buildup before a breakout. Price is currently trading below the 8-SMA, suggesting short-term weakness. On the 4-hour and 1-hour timeframes, gold remains rangebound, showing indecisiveness and a lack of directional momentum.

Intraday Trend/ Intraday Strategy: Short term trend remains neutral and favours  a range trading approach—buy near support levels and sell near resistance.

Weekly Trend: Bullish

Major Resistance: 3313, 3318, 3328

• Major Support: 3300, 3286, 3277