Gold Price Forecast: XAU/USD resistance at $3,345 is holding bulls for now

• Gold posts moderate gains as the US Dollar retreats across the board.
• Investors are cautious of holding large US Dollar longs ahead of the US CPI release.
• XAU/USD is on a bearish correction from last week's high, at $3,400.
  

Gold (XAU/USD) is trading higher on Wednesday following some hesitation on Tuesday. The sceptical market reaction to the US-China trade deal and investors' cautious mood ahead of the US CPI release are supporting the precious metal, which, nevertheless, is struggling to extend gains past the $3,345 area.

The US and China agreed on a "framework" for a deal to de-escalate their trade tensions and return to the last month's Geneva consensus. The scarce details of the deal, however, have raised speculation about its durability, which explains the tepid market reaction to the news.

The focus now is on the US Consumer Prices Index data, due later today, that might confirm the inflationary impact of Trump's tariffs. The risk is on an upside surprise that might bring deflation fears back to the table and increase bearish pressure on the USD.

Technical analysis: XAU/USD remains in a bearish correction from $3,400

From a technical standpoint, the pair is consolidating losses following a bearish correction from $3,400 last week. Price action is showing "inside days" within Friday's trading limits, with the 4-Hour RSI flat near the 50 level.

An Elliott Wave analysis would suggest that we are on an A-B-C correction, following the completion of a bullish cycle last week. The current upward leg (A-B leg) might extend beyond the mentioned $3,345 resistance to test the reverse trendline, now at $3,375, before extending lower.

On the downside, supports are at the June 9 low, $3,290, and the May 15 and 19 highs, and May 29 lows at $3,245.

XAU/USD 4-Hour Chart