Gold has come under pressure this week, especially on Wednesday, following the stronger-than-expected US GDP data and a hawkish tone from the FOMC. Both events boosted the US dollar and lifted equity markets, which typically weigh on gold prices—and that’s exactly what happened.
The yellow metal dropped sharply and reached a key dynamic support marked in green, which connects the May and June lows. From this level, we’ve seen a modest bounce, but the real battle is now taking place on a critical horizontal level around $3,295, marked by pink and supported by red arrows showing previous support zones.
This $3,295–$3,300 zone is a key battleground. It has acted as support multiple times over recent months, and it’s now being tested from below.
If gold climbs decisively above this zone, it would signal a successful defense of both dynamic and horizontal support, giving bulls a reason to return. However, if gold breaks below the green support, it would confirm a bearish continuation and open the door to a deeper drop in the mid- to long-term outlook.
Gold is at a technical crossroads—watch this area closely.