XAU/USD Tests Critical Barrier

🪙 Gold Price Forecast: XAU/USD Nears Key Resistance at $3,330

NEWS | August 20, 2025 – 10:36:39 GMT | By Guillermo Alcala

Gold (XAU/USD) is recovering part of its recent losses after a two‑day pullback, though the overall trend remains bearish. On Wednesday morning, the precious metal bounced from two‑week lows just above $3,300, but stalled around the former support zone near $3,330 — a level that continues to cap gains and keep the broader downtrend in place.

📉 Short‑Term Supportive Factors

Negative sentiment across global equities — especially after Tuesday’s sell‑off on Wall Street — has strengthened safe‑haven demand. At the same time, optimism for a swift diplomatic resolution to the war in Ukraine has cooled, after the Kremlin downplayed the likelihood of direct talks between Russian President Vladimir Putin and his Ukrainian counterpart, Volodymyr Zelenskyy.

📊 Technical Analysis: Bulls Face a Barrier

The four‑hour chart shows XAU/USD trading within a descending wedge pattern — a structure that often precedes an upside breakout. However, buyers will need to overcome a formidable resistance band between $3,325 and $3,335, aligning with the August 12, 14, and 18 lows and the descending trendline from the August 8 high.

• Above this zone, the next targets lie at Tuesday’s peak of $3,345, followed by $3,360 and then $3,375.

🛡 Support Levels to Watch

• Immediate support sits between $3,305 and $3,315, defined by Tuesday’s low and the August 31 high, which also coincides with the wedge’s lower boundary.
• A break beneath that range would open the way toward the August 1 low near $3,280.

📝 Outlook Summary

• Overall bias: Bearish unless $3,335 is decisively broken.
• Bullish drivers: Breakout from the wedge, heightened safe‑haven flows.
• Bearish drivers: Ongoing resistance at $3,330, prevailing downtrend pressure.
• Short‑term view: Consolidation around key technical levels before the next directional move.