XAUUSD (Gold) Technical Analysis – Price Eyes Key Fibonacci Levels

 XAUUSD (Gold) Technical Analysis – Price Eyes Key Fibonacci Levels

 Date: May 26, 2025 | 

 By Spider Capital Investment Limited Analyst Team
Current Price: $3331.84

 Overview
Gold (XAUUSD) continues to demonstrate strong bullish structure, trading near $3331.84 amid persistent geopolitical tensions, demand for safe-haven assets, and a softer U.S. Dollar. As the market prepares for upcoming macroeconomic catalysts, gold remains in a technical sweet spot.

 Fibonacci Retracement Levels
(Drawn from $3201.50 low to $3361.00 high)

Fibonacci Level Price Potential Reaction
0.0% $3361.00 Recent swing high (Resistance)
23.6% $3321.91 Light support zone
38.2% $3304.48 Key retracement zone
50.0% $3281.25 Mid-level support
61.8% $3258.01 Golden ratio support
100% $3201.50 Recent swing low (Base support)

 Technical Outlook
Trend: Bullish above $3300

Resistance Levels: $3361, $3385

Support Levels: $3304, $3281, $3258

Gold is maintaining a higher-high, higher-low structure on the 4-hour chart. Price action near the 23.6% Fibonacci level ($3321.91) suggests ongoing consolidation, and the area between 38.2% and 61.8% retracement zones remains critical for trend continuation.

As long as price holds above the 50% retracement zone ($3281.25), the bullish momentum is likely to stay intact.

 Fundamental Drivers

 Weaker Dollar: Supporting upward pressure on gold prices.

 Declining Bond Yields: Increasing gold’s appeal as a non-yielding asset.

 Geopolitical Concerns: Boosting demand for safe-haven assets.

 Central Bank Policies: Fed’s guidance continues to influence gold direction.

 Sentiment Summary
Market Bias: Bullish

Volatility Outlook: Moderate to High

Key Level to Watch: $3361 (Resistance), $3281 (Support)

Market participants are closely monitoring inflation data and Fed commentary. Any signals of a rate pause or cut may further fuel the bullish sentiment for gold in the near term.

 Disclaimer
This analysis is provided for informational and educational purposes only. It does not constitute investment advice or a trading recommendation. Trading in forex, metals, and derivatives carries a high level of risk and may not be suitable for all investors. Always conduct your own research and consult with a licensed financial advisor before making any trading decisions.