Gold Targets $3,640: 3 Key Breakout Levels Traders Must Watch Now
Gold (XAU/USD) is consolidating just below $3,600 after last week’s record high. Asian session saw prices trade around $3,598...
Quick overview
- Gold (XAU/USD) is consolidating just below $3,600 after reaching a record high last week, supported by expectations of Fed rate cuts.
- Recent labor market data showed only 22,000 jobs added in August and a rise in the unemployment rate to 4.3%, fueling speculation for rate cuts.
- Gold's uptrend remains intact with key support at the 50-day SMA of $3,549, while resistance at $3,600 could lead to further upside if cleared.
- Traders are advised to consider long positions above $3,600 with targets at $3,622 and $3,640, while short opportunities may arise if resistance holds.
Gold (XAU/USD) is consolidating just below $3,600 after last week’s record high. Asian session saw prices trade around $3,598 as the US dollar staged a small bounce. Equities are trading risk on so demand for safe havens is low. Expectations of Fed rate cuts are what’s supporting gold at these levels.
Recent labor market data reinforced the case for rate cuts. US added only 22,000 jobs in August, way below expectations. Unemployment rate ticked up to 4.3%. Wage growth slowed to 3.7% year on year. These numbers have fueled speculation of a bigger rate cut in September with markets now pricing in up to 3 cuts by year end.
Trump did promise to end the Ukraine war within 24 hours and boost jobs with lower prices during his campaign. As of September 2025, the war continues with recent Russian strikes on Kyiv. US unemployment rose to 4.3% in August, with only 22,000 jobs added. Inflation is at…
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Chart Signals and Momentum Watch
Gold’s uptrend is still intact with a rising trendline and a series of higher lows. 50 day SMA at $3,549 is the dynamic support and the zone between $3,560 and $3,545 has held.
RSI is at 66, strong momentum but close to overbought. If RSI stalls while price goes up, bearish divergence could emerge, a sign of fading strength. Candlestick analysis shows hesitation at resistance with spinning tops forming at $3,600. Recent candles with long lower shadows show dip buying is still alive.
If buyers can clear $3,600, next upside targets are $3,622 and $3,640. Failure to do so could see short term pullbacks to the trendline.
Gold (XAU/USD) Trade Setup for Beginners
For beginners, gold is at a key level. A long trade is attractive on a break above $3,600 with targets at $3,622 and $3,640. To limit downside risk, stop loss can be placed below $3,560 just below the trendline and SMA.
If resistance holds and bearish reversal patterns like shooting star or bearish engulfing candle form, short opportunities could develop back to $3,560.
- Long trade: Above $3,600, targets $3,622 and $3,640
- Stop-loss: $3,560
- Short: On resistance, $3,560
Be patient. Wait for clear candlestick confirmation before entering, gold is at a pivot point where momentum and sentiment can change fast.
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