XAUUSD – Mild Pullback Before Breakout?

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Gold is currently experiencing a short-term pullback after U.S. jobless claims forecasts came in lower than previous levels. This suggests that the labor market remains resilient, reducing the likelihood of the Fed cutting interest rates soon. As a result, the U.S. dollar finds support, putting mild downward pressure on gold.

However, on the H4 chart, XAUUSD remains within a clearly defined ascending channel. The current dip may simply be a retest of the support zone around 3,356 — the intersection of the channel’s lower boundary and the 34 EMA. If this area holds firm, gold could rebound with the next target at 3,429.

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