Gold prices (XAUUSD) are experiencing a pullback as the US dollar stabilizes, yet expectations of a dovish Federal Reserve continue to support underlying bullish sentiment among investors. After a period of steady growth since early August, gold recently broke above key resistance levels around $3,349 and $3,373 per ounce. These levels now act as support, with current prices hovering near the $3,396 to $3,408 range—a zone where selling pressure has previously emerged.

Technical indicators such as widening Bollinger Bands and strong positions above the midline reflect heightened market volatility and reinforce the ongoing uptrend. However, the market is now approaching an area of critical resistance near $3,408. A sustained move above this threshold could pave the way for further gains toward the late-July high at $3,439, and potentially higher levels if momentum continues.

Conversely, failure to break above this resistance may trigger a short-term correction, with prices potentially retreating toward the $3,373 or $3,349 support zones. Some technical signals, including recent candlestick patterns around the upper Bollinger Band and corrective wave formations, suggest that a pullback remains possible before any renewed upward push.

Broader market sentiment is shaped by lingering geopolitical uncertainties and renewed bets that the Federal Reserve may adopt a more accommodative monetary policy, especially after softer-than-expected US employment data. This climate continues to underpin medium-term support for gold, even as short-term fluctuations arise due to shifting dollar strength and investor positioning.

Looking ahead, traders should monitor key resistance and support levels, as well as signals from Federal Reserve commentary and upcoming economic data, for indications of the next decisive move in gold prices.