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Gold price (XAU/USD) has seen a mild correction. After touching a fresh all-time high, it pulled back slightly as traders booked profits. This drop comes amid encouraging developments in global trade. Positive talks between the US and Japan have provided some relief to markets. As global fears ease, some investors choose to book profits from gold’s recent rally. However, global tensions, particularly between the US and China, continue to support the safe-haven appeal of gold.

Gold Pulls Back as Market Sentiment Shifts on US-Japan Deal Hopes

Gold price pulled back slightly after hitting a record high of $3,358. The correction came as the United States and Japan made progress in trade negotiations. This positive news reduced global fears and caused some investors to take profits. US President Trump’s message about strong progress with Japan boosted market confidence. As a result, the safe-haven demand for gold eased a bit in the short term.

Despite this, the bigger picture remains uncertain. The trade war between the US and China is still ongoing. This keeps global markets cautious and supports gold prices. China wants respectful talks, while the US expects China to start the discussions. The lack of agreement adds pressure to global trade. This uncertainty keeps gold attractive as a hedge against risk.

The US Dollar also saw a slight rebound, which added pressure to gold. A stronger dollar makes gold more expensive for investors holding other currencies. However, Fed Chair Powell gave a balanced view on the US economy. He said the economy remains firm but faces risks. This cautious stance limits any sharp gains in the dollar, allowing gold to stay supported in the long run.

Technical Analysis: Gold Hits Resistance After Breakout Attempt

The daily chart for gold shows that the price is trading within an ascending channel for several months. This channel marked a steady uptrend with price bouncing between well-defined support and resistance levels.

In April, gold prices surged and attempted a breakout above the upper boundary of the channel. This move pushed the metal to a new all-time high of $3,358. However, after reaching this level, the price faced resistance and began to pull back slightly.

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The breakout level near $3,200 acted as a key decision zone. Although the breakout was strong, it is still uncertain whether it will sustain or turn into a false breakout. A retest of the channel top is possible in the coming sessions.

Technically, this pullback seems healthy. It allows for consolidation and could set the stage for another rally. The channel’s structure remains intact, with bulls holding the advantage as long as prices stay above the midline of the channel.

Momentum indicators have shown some signs of cooling down, which supports the case for short-term profit-taking. Still, the broader trend remains bullish, and dips could attract fresh buying interest.

Gold Trade Hits Target After Strategic Entry and Tight Stop Loss

The chart below shows a successful gold trade by Gold Predictors. The entry was made at $3,031 with a stop loss set at the same level, ensuring minimal risk. The target was set at $3,250. Once the price reached the target, the trade was closed, securing a profit of $219 per ounce. This setup highlights how traders should define their entry, stop loss, and take-profit levels clearly before entering a trade. This trade was shared with premium members on WhatsApp and successfully hit the target.

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Conclusion

Gold’s slight pullback from its peak reflects a pause in a strong uptrend. While easing US-Japan tensions helped reduce some global anxiety, ongoing issues with China continue to support gold. The recent breakout from the ascending channel indicates strong buying interest, but traders must watch closely to see if the breakout holds. As long as the price stays above key support zones, the bullish trend remains intact. 

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