Technical analysis of XAUUSD today. This week, XAU/USD gold prices successfully overcame the selling pressure they experienced in mid-May and broke the psychological resistance level of 3,300, restoring buying momentum. Amid ongoing geopolitical tensions and a weak dollar index, gold is once again at the forefront of trading as a safe haven. Investors are awaiting the release of US data today that could move the market strongly.
Technical analysis of XAUUSD today: Gold Technical Overview
The hourly (H1) chart shows a clear breakout of the 3,304.39 resistance area, and gold is currently trading above 3,335.83, a pivotal point that indicates current bullish momentum. The breakout occurred with strong candlestick formations supported by bullish momentum, enhancing the possibility of testing higher levels during Friday’s session.
Technical Indicator Analysis
The MACD: indicator is in the positive zone and showing a bullish divergence, confirming continued buying power.
The Stochastic Oscillator: remains in the overbought zone, which may open the way for a slight corrective pullback before resuming the uptrend.
Moving Averages (EMA 20/50/100): The price is above all averages, and they are positively diverging, supporting the continuation of the upward trend as long as the 3304 level is not broken.
Expected Scenarios for Gold
Bullish Scenario
- If the price holds above 3335.83, the next target will be 3354.93, a key resistance level that represents a previous peak and may see some hesitation.
A firm break of 3354 will push gold towards the 3380 area and then 3400 in the short term.
- Each resistance area represents an important milestone for measuring upward momentum and determining the possibility of the trend continuing.
Bearish Scenario
- If gold fails to consolidate above 3335.83, a decline towards 3321.21 and then 3304.39 is very likely, which are current support areas.
A clear break of 3304 weakens momentum and brings 3280.25 back into the picture.
- Every broken support is a sign of weakness that must be closely monitored to avoid falling into the trap of impulsive buying.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | XAU/USD |
| 3335.83 | 3321.21 | Entry point |
| First resistance: 3354.93 | First support: 3305.48 | Target Point 1 (TP1) |
| Second resistance: 3265.00 | Second support 3290.00: | Target Point 2 (TP2) |
| 3321.21 | 3335.83 | Stop Loss (SL) |
Gold is currently benefiting from a weak dollar and global hedging.
and the uptrend appears to remain dominant as long as the price is above 3304. The bullish scenario remains likely.
but today’s US data will be crucial in confirming a break towards 3355 and 3380 or returning gold to a sideways trend. Monitoring intraday levels and reversal candles in resistance areas will be key to successful gold trading during the US session.
Economic News Affecting Gold – Friday, May 23, 2025:
- United States: Manufacturing PMI release at 4:00 PM Mecca Time.
- This indicator is a strong driver of the dollar, and any positive reading could strengthen the dollar and temporarily pressure gold.
Gold is highly sensitive to US dollar volatility and market risks.
