Gold (XAU/USD) recently experienced a breakdown from its consolidation range, leading to increased volatility and a heightened risk of a deeper correction. After a period of relative stability, prices dipped toward the $3,300 level, testing critical support as technical momentum shifted. Short-term price action now hinges on whether bulls can reestablish control or if bears will accelerate a move lower.

Current market sentiment suggests cautious optimism among buyers. Gold found fresh support near $3,300, triggering a tentative rebound. However, this recovery remains fragile. The upcoming Federal Reserve policy decision and signals about future interest rate cuts will play a pivotal role in determining gold’s next direction. If the Fed maintains a hawkish stance or delays rate cuts, the dollar could strengthen, and gold may face renewed selling pressure.

On the technical front, gold has oscillated in a broad range, with resistance forming near the $3,400 level. Only a sustained break and daily close above this line would indicate renewed bullish momentum and open the path toward higher targets, possibly in the $3,800 zone. Conversely, failure to hold the $3,300 support could trigger a fresh wave of liquidation, pushing prices lower and deepening the ongoing correction.

Looking ahead, several factors will influence gold’s trajectory. Persistent concerns over global geopolitical risks and central bank demand continue to offer underlying support. However, easing trade tensions and a resilient U.S. dollar have temporarily capped significant upside moves.

Traders should monitor key pivots like $3,300 and $3,400, along with macroeconomic headlines, to gauge the likelihood of either a sustained recovery or a deeper corrective phase. Gold’s near-term fate will depend on a delicate balance between safe-haven demand and evolving monetary policy signals. As the market digests new data, sharp moves in either direction remain possible.