Gold struggles to make it through $5,100 amid USD uptick; bullish bias remains

💡 DMK Insight

Gold’s persistent bid tone is noteworthy, but the struggle to breach $5,100 raises questions about momentum. With XAU/USD holding steady for seven consecutive days, traders should consider the implications of this resistance level. The inability to push past $5,100 suggests a potential exhaustion in buying pressure, which could lead to a pullback if sellers gain traction. Monitoring the daily chart, a close below $5,050 could signal a shift in sentiment, prompting a reassessment of long positions. Additionally, keep an eye on broader market factors like inflation data and geopolitical tensions that often drive gold prices. If these factors remain supportive, gold might find renewed strength, but the current technical setup indicates caution. On the flip side, if gold manages to break above $5,100 decisively, it could trigger a wave of buying, potentially leading to a test of previous highs. For now, traders should watch for volatility around this key level and adjust their strategies accordingly.