Gold futures have recently dipped below $3,600 after hitting a peak of $3,640.1. The latest price is around $3,588.3, reflecting a decline of 1.3% from the previous day’s closing price. Traders should hold off on new trades unless the price rises back above $3,600. If it climbs past $3,622, a bullish trend is likely. On the flip side, if it falls below $3,597.8 after testing $3,600, a bearish trend could emerge.

Key Levels and Strategies

Key levels to watch are $3,628 and $3,650 for bullish movements, and $3,591.2 to $3,539.6 for bearish movements. These levels are crucial for planning partial profits, with $3,550–$3,650 being potential distribution areas. Traders should consider using strategies like VWAP and Volume Profile to guide their decisions. It’s recommended to execute one trade per direction as per the plan and aim to scale out at specific profit targets. No trades should be initiated without the price exceeding $3,600. This analysis employs advanced mapping techniques for guidance but emphasizes the importance of risk management. Currently, gold is pulling back after reaching a new all-time high, now resting below the critical $3,600 mark. In the coming weeks, traders in derivatives should remain disciplined and wait for clearer market signals. The first key sign will be how the price behaves around the $3,600 level. A bullish scenario will only be confirmed if we observe a steady move above $3,622. This suggests that the recent drop was just a healthy pause before another upward push. This view is supported by the latest U.S. CPI data for August 2025, which showed core inflation steady at 3.1%, alongside recent comments from the Fed indicating a potential pause in interest rate hikes, which adds fundamental support for gold. On the other hand, if the price struggles at $3,600, a deeper correction could follow in the next weeks. If gold briefly rises above $3,600 but falls back below $3,597.8, it would suggest that sellers are gaining control from tired buyers. Given the rapid rise to the all-time high last week, a pullback towards support levels around $3,550 wouldn’t be unexpected.

Comparison with Past Gold Consolidations

This current situation resembles the consolidations seen when gold first climbed past $2,000 in the early 2020s. Such significant psychological milestones often lead to major profit-taking and require a period of mixed trading before a new trend can form. We should anticipate high volatility in this key price area. Supporting the long-term trend, data from the World Gold Council for Q2 2025 indicates that central bank purchases of gold continue at a record pace. This institutional demand creates strong underlying support for the market. Therefore, any notable drop is likely to be seen as a buying opportunity by larger players. For now, the focus should be on using the specified price levels to manage risk rather than predicting the market’s final direction. If a bearish scenario arises, traders can consider taking partial profits at support levels like $3,579 and $3,551, where previous buying occurred. Conversely, if a bullish trend resumes, it’s wise to scale out at resistance near the former highs of $3,640 to secure profits. Create your live VT Markets account and start trading now.

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