Gold (XAU/USD) started September on a positive note, holding steady after a strong August rally of nearly 5%. The softer US dollar and expectations of a Federal Reserve rate cut later this year continue to support bullish sentiment in the market. Traders are now watching whether gold can extend its gains or face profit-taking near key resistance areas.
On the fundamental front, weakening Treasury yields and dovish expectations from the Fed have been favourable for bullion. Lower interest rates reduce the cost of holding gold, while a weaker dollar keeps international demand firm. In addition, consistent inflows into gold-backed ETFs suggest institutional investors are maintaining a bullish outlook. However, upcoming US economic data, including jobs and inflation reports, may introduce short term volatility and influence intraday moves.
From a technical perspective, gold is consolidating just below an important resistance level. The nearest supply zone lies between 3460.00 and 3475.00, a mid-range barrier that has repeatedly capped upside moves in recent sessions. A daily close above this zone could trigger further buying interest, opening the path toward the next resistance at 3505.00–3520.00.
On the downside, immediate demand rests around 3415.00–3400.00, which has provided solid intraday support. If this zone is breached, the next support level can be found at 3375.00–3360.00, where buyers are likely to defend the broader uptrend. These mid-range levels are crucial because they provide tighter trading opportunities for intraday traders without stretching into overly wide zones.
In the short term, the market bias remains cautiously bullish as long as prices stay above 3400.00. A breakout above 3475.00 could strengthen momentum and pave the way toward 3505.00–3520.00, while failure to break higher may trigger a correction back toward the 3415.00–3400.00 demand zone.
In conclusion, XAU/USD begins September with supportive fundamentals and a constructive chart structure. For today, gold is likely to trade within the range of 3400.00–3475.00, with traders focusing on these mid-level support and resistance zones to gauge the next directional move. Careful attention to US data releases and dollar strength will be key for confirming the breakout or breakdown in the sessions ahead.
