XAU/USD Edges Higher, Awaiting a Break Above 2,635 USD

Gold is currently trading around 2,609 USD, showing a slight upward trend after touching the critical support level of 2,604 USD. On the 4-hour chart, the EMA 34 (2,620 USD) and EMA 89 (2,632 USD) act as dynamic resistance, applying pressure on the bullish momentum. However, the price holding above the key support level indicates that buyers are striving to regain control.

The key resistance zone at 2,635 - 2,640 USD remains a major obstacle to overcome. If the price breaks above this level, the next target will be in the range of 2,650 - 2,660 USD, signaling a continuation of the upward trend. Conversely, if the price falls below 2,604 USD, selling pressure could push it down to the 2,590 USD area or lower, bringing sellers back into dominance.

Fundamentally, the gold market is influenced by anticipation of signals on interest rates from the Federal Reserve as well as tariff policies from the administration of President-elect Donald Trump. Thin liquidity at the end of the year may cause unexpected volatility. Traders should closely monitor these catalysts to determine the next market moves.
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