XAUUSD – Signs of Weakness at the Pressure Zone

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Today’s market has low trading volume as both the UK and the US are on holiday. This makes price action more prone to “choppy” movements within a narrow range, and technical signals tend to become more reliable.

Gold is approaching a strong resistance zone around 3,420 – a level that previously triggered a sharp drop in early May. Based on the current technical structure, it’s clear that gold is entering a “pressure zone,” as upward momentum slows down and recent candles start to show hesitation.

The most likely scenario is a rejection at 3,420, followed by a pullback toward the 3,250 support area – where EMA 34 and prior accumulation volume converge. If this zone fails to hold, the next target could be around 3,170.

We don’t always have to “call the top,” but this is definitely a time to dial back bullish expectations and closely monitor price action in this sensitive area.

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