Summary: Gold holds above $2,320 support. Bearish flag suggests downside risk. Key resistance at $2,380. Strategy: sell on bounce to $2,365 or buy breakout above $2,400.
Step 1: Current Market Overview
As of June 8, 2026, XAUUSD is trading near $2,345, down 1.2% from last week's high of $2,378. The US Dollar Index (DXY) strengthened to 105.80 following hawkish Fed comments. Screenshot: Daily chart showing price action from $2,320 to $2,380.
Step 2: Key Support and Resistance Levels
Immediate support: $2,320 (previous swing low and 50-day SMA). Major support: $2,280 (June 2025 low). Immediate resistance: $2,365 (20-day EMA). Major resistance: $2,380 (last week's high) and $2,400 (psychological level).
Step 3: Technical Pattern Analysis
On the 4-hour chart, XAUUSD formed a bearish flag pattern after the drop from $2,378 to $2,332. This pattern typically signals continuation downward. The RSI is at 42, not yet oversold (below 30). MACD shows bearish crossover. Screenshot: 4-hour chart with bearish flag drawn.
Step 4: Fundamental Drivers
Fed Governor Waller hinted at another possible rate hike in September if inflation persists. US Non-Farm Payrolls came at 272K vs 185K expected, strengthening USD. Geopolitical risks (Middle East tensions) provide some gold support but are currently overshadowed by dollar strength.
Step 5: This Week's Trading Strategy
Scenario 1 (Sell): If price bounces to $2,360–$2,365, enter short with stop loss at $2,382. Take profit at $2,322 and $2,285. Risk-reward ratio ~1:3. Scenario 2 (Buy): Only if price breaks above $2,400 with strong volume, then buy with stop at $2,380, targeting $2,435.
Step 6: Risk Management Tips
Position size should not exceed 2% of account equity. Use a trailing stop after 50 pips profit. Avoid trading during high-impact news (CPI release on Thursday). Screenshot: Risk management table showing position sizing.
Reference : TradingView daily chart analysis / Reuters gold market update June 7, 2026 / FedWatch CME Group.