**Gold’s Technical Indicators** Gold has risen for the third day in a row, with buyers testing the $4,150 resistance level. A weaker US Dollar in a moderately optimistic market is helping boost precious metals, especially with recent news about US government funding. The US Senate has agreed on a plan to end the largest government shutdown in history. This bill is likely to be approved by the House and signed by President Trump shortly. The XAU/USD price has climbed above $4,050, showing strong upward momentum. Technical indicators such as the 4-hour RSI and MACD suggest a positive trend. If gold holds above $4,150, it could reach $4,220, challenging buyers near the all-time high of $4,380. Key support levels are $4,050 and $3,880. **Gold’s Role as a Safe Haven** Gold is considered a valuable asset and a safe haven in uncertain times. It protects against inflation and currency losses since it doesn’t depend on any issuer. Central banks are significant gold holders, adding 1,136 tonnes valued at $70 billion in 2022. Gold usually moves in the opposite direction of the US Dollar and Treasuries. When the Dollar falls, gold generally rises. Events such as geopolitical tension and low interest rates also influence gold’s price. Its dollar-based pricing makes it sensitive to changes in the USD. As of November 11, 2025, gold is testing the important $4,150 resistance level for the third day. The immediate focus is on the US Dollar, which has slipped following the news about the government shutdown. Traders in derivatives should consider a confirmed break above $4,150 as a key signal for buying. For those expecting gold to continue rising, purchasing call options with a strike price around $4,200 could be a smart strategy to benefit from a movement towards $4,220. This positive trend is backed by last week’s US inflation data, which showed a slight increase of 3.8% year-over-year, enhancing gold’s reputation as an inflation hedge. The World Gold Council’s Q3 2025 report highlighted that central banks have been actively purchasing gold, adding another 250 tonnes to global reserves. **Trading Strategies at Key Levels** On the other hand, if gold cannot break through the $4,150 barrier soon, it might indicate a short-term peak. A similar situation occurred in late 2023 when gold sharply retreated after failing to surpass critical resistance levels. A rejection at this point could open up opportunities for put options aiming for the $4,050 support level. Traders should keep a close eye on the US Dollar Index, as its movements will heavily influence gold prices. The news about the shutdown appears to be mostly factored in, and any signs of the Dollar stabilizing could quickly stall gold’s advance. A failure to move higher would match technical indicators like the 4-hour RSI pulling back, indicating that the recent bullish trend may be slowing down. With this uncertainty at a significant technical point, increased volatility is expected. Implied volatility on gold options has already increased, reflecting the anticipation of a major price shift either above resistance or back down to support. This scenario could be ideal for strategies like straddles, which benefit from big price swings in any direction without needing to predict the direction. Create your live VT Markets account and start trading now.

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