Gold price upward momentum continues, but further upside might be limited. The precious metal remains steady after reclaiming the 3,300 psychological level Thursday Morning. As of this writing, the metal trades above $3330, but upward momentum has not been strong in the last 5 hours as investors are locking in profits from its recent rebound.

After reaching a new all-time high in April, the metal corrected. In early May, the metal dropped to below $3200 but again found strong support near the $3120 mark and has subsequently rallied back above $3300.* The weaker dollar and increasing expectations of Fed rate cuts boosted demand for the safe-haven metal.

Fundamentally, the next week’s April PCE inflation data, the Fed’s preferred inflation measure, is expected to be a pivotal data point for the gold. US Core PCE Price Index — the Fed’s most closely watched assessment of how quickly prices are rising across the economy. Therefore, next week, PCE data is very crucial, which could influence expectations regarding the Fed’s next policy move.

At the same time, keep an ear out for insights from the Fed. Fed officials, including Federal Reserve Bank of New York President John Williams and Richmond Federal Reserve President Tom Barkin, are set to speak on later Thursday. Their insights might offer clues on the future of interest rates after recent jobs and CPI reports.

XAUUSD Technical Analysis & Forecast

Technically, the short-term trend remains supportive. The recent rebound stalled at the daily resistance of around $3345 per ounce and showed multiple failures in the lower time frames. However, a 4-hour closing above $3345 might push the metal towards the $3360/62 resistance.

While a high timeframe study and technical analysis of the XAU/USD chart suggest that there is still a chance for a major pullback if the metal fails to extend the upside momentum. Therefore, any gains are merely rallies that could bring up better areas to short the metal. If the pair faces rejection in the red areas on the chart, renewed selling will ultimately target $3250. If there is a move below $3250, the metal could dive toward $3200 and 3160. Any more losses might send the pair toward the $3120/00 level.