Société Générale’s foreign exchange analysts report that gold’s recent advance has paused beneath the important $3,500 level, forming a lower high near $3,435. Technical indicators point to weakening upward momentum: the daily MACD has retreated from multi-month peaks and fallen below its trigger line, indicating a likely consolidation phase rather than a continued immediate ascent.
For the bullish move to regain strength, gold would need to clear the $3,435 resistance. On the downside, near-term support is evident around $3,200, with a secondary floor close to $3,140. These levels suggest a range in which prices could stabilize while market participants reassess sentiment and positioning.
Market participants should watch momentum indicators and price action around the identified support and resistance points. A decisive break above $3,435 accompanied by rising momentum would signal a renewed leg higher, while failure to hold $3,200 could open the way to test $3,140. In the meantime, expect consolidation and reduced directional conviction as traders digest recent gains and evaluate macroeconomic and monetary policy developments that influence safe-haven demand for gold.