Gold appears to be pausing from its climb now that traders are bracing for the FOMC minutes.
Can it carry on with its correction?
Here are the retracement levels to watch on the 4-hour time frame.
Gold (XAU/USD): 4-hour
Gold (XAU/USD) 4-hour Chart Faster with TradingView
Gold has been on a tear for the most part of the month, as easing geopolitical tensions and a rally in AI-related tech stocks earlier on propped the commodity higher.
However, this rally appears to be stalling as a short-term double top pattern forms around the $4,350-4,450 area while the focus shifts to the upcoming FOMC meeting minutes.
Could this mark the end of the precious metal’s climb?
Gold is still hanging out above the reversal pattern’s neckline, but a break below this support zone could clear the way for a major retracement.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on gold and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The Fibonacci tool shows that the 38.2% level is near the $4,300 major psychological mark while the 50% Fib lines up with S2 ($4,240.44) and the 100 SMA dynamic support. This moving average is above the 200 SMA to suggest that support levels are more likely to hold than to break.
If so, XAU/USD could set its sights back on the upside targets at the pivot point ($4,879.33) then the swing high in line with R1 ($4,447.42) or higher.
On the other hand, a break below the Fib levels and area of interest around S3 ($4,169.84) could clear the way for a move to the downside targets at S4 ($4,099.24) then S5 ($4,028.64).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
This article uses Fibonacci retracement levels and pivot points to map out where gold’s pullback could find support or turn into something bigger. Premium members can read our lesson:
📖 How to Identify Reversals and Retracements
Reading this helps you understand how Fibonacci levels and pivot points are used together to gauge retracement depth, how moving average alignment signals whether support is likely to hold, and how to tell a healthy pullback apart from the start of a full reversal.
And if you’re not a Premium subscriber yet, now’s a good time to sign up.
With Babypips Premium, you get full access to School of Pipsology lessons that help you understand not just where price is sitting on the chart, but how to read the retracement tools that tell you whether a pullback is about to end or just getting started.
