Multiple Bullish Reversals form on Gold's chart amid shifting global trade & Fed expectations

Gold (XAU/USD) is trading with a mild negative bias near $3,328 during Tuesday’s Asian session, struggling to extend its rebound from the previous day's bounce off the one-week low just below $3,300. Market sentiment is weighed down by expectations that President Trump’s proposed tariffs could boost inflation and push the Federal Reserve to delay any rate cuts, acting as a headwind for the non-yielding metal. Despite this, the presence of multiple bullish reversal patterns on the 4H chart—including inverse head & shoulders and a descending broadening wedge—signals that downside could be limited in the near term.

Investors remain cautious amid concerns over the economic fallout from the proposed reciprocal tariffs, alongside persistent geopolitical tensions such as Red Sea disruptions. These factors are dampening global risk appetite and may support safe-haven flows into gold. Additionally, some weakness in the US Dollar and uncertainty over the Fed's policy path are contributing to gold's resilience. Traders now await the FOMC meeting minutes due Wednesday for clearer guidance on interest rate direction before making decisive moves.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold remains in a neutral to bullish setup, showing signs of consolidation with a Doji candle on the daily chart, reflecting market indecision. The price is currently trading above the 55-SMA but facing resistance below the 20SMA on the daily timeframe. On the 4H chart, Gold is struggling to break above the 200-SMA but the potential formation of Inverted head & shoulder signals a breakout on the upside coupled up with a tight consolidation on 1-H timeframe.

Weekly Trend: Neutral

Intraday Trend/ Intraday Strategy: The intraday bias remains Bullish and favours the approach of Buying on Breakouts and Buying on Support

Major Support: 3327, 3300, 3295
Major Resistance: 3350, 3360, 3370