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FPG XAUUSD Market Report October 10, 2025

Fortune Prime Global | 2025-10-10 09:32

Abstract:Gold experienced a clear and strong pullback at 4059, which remains the previous all-time high. The price failed to sustain above this critical resistance and subsequently corrected sharply down to 39

Gold experienced a clear and strong pullback at 4059, which remains the previous all-time high. The price failed to sustain above this critical resistance and subsequently corrected sharply down to 3943 before attempting to rebound. At present, gold trades around 3992, showing heightened volatility and market uncertainty. This marks the most significant correction in recent months, suggesting short-term exhaustion from the previous rally.

On the H1 chart, price action shows a temporary stabilization after the sharp fall, hovering near the middle Bollinger Band. The Parabolic SAR still indicates bearish momentum, but the dots are tightening, hinting at a potential trend reversal if price sustains above 4000. The Stochastic Oscillator has turned upward from the oversold zone, confirming early bullish recovery signals. Meanwhile, Bulls Power is improving slightly, though not yet strong enough to confirm a full trend reversal. The key technical levels to watch remain 4059 as resistance and 3940 as support.

Fundamentally, the recent gold correction reflects investor caution amid uncertainty surrounding the U.S. Federal Reserves interest rate outlook and ongoing discussions about U.S. government shutdown. Rising Treasury yields have temporarily pressured gold, but persistent geopolitical tensions and global risk sentiment continue to provide underlying support. If the Fed signals a pause or markets perceive increased fiscal instability, gold could regain momentum toward retesting its all-time highs.

Market Observation & Strategy Advice

1. Current Position: Gold is trading around 3992, attempting to recover after a sharp correction from the all-time high at 4059. The recent rebound indicates early signs of stabilization, but price momentum remains cautious within a volatile range.

2. Resistance Zone: The main resistance area stands at 4050–4060, which aligns with the previous peak and serves as a strong psychological and technical barrier for buyers to overcome.

3. Support Zone: Strong support is located at 3940–3950, where the last significant rebound occurred. A break below this level may open the path toward 3910 as the next downside target.

4. Indicators: Technical indicators show a potential recovery setup. The Stochastic Oscillator has turned upward from oversold levels, signaling short-term bullish momentum. Bulls Power is improving, hinting at reduced selling pressure, while the Parabolic SAR dots are tightening below price candles — an early sign that a bullish reversal may be forming if the price sustains above 4000.

5. Trading Strategy Suggestions:

  • Bullish Scenario: Consider buying near 3950–3970 if price action confirms support with bullish candles, targeting the 4020–4050 zone. Place a stop loss below 3935 to manage downside risk.

  • Bearish Scenario: If the price fails to break above 4050, look for short opportunities around 4040–4050, targeting 3980–3960 with a stop loss above 4065.

  • Neutral Approach: Wait for a clear breakout beyond 4050 (bullish) or a breakdown below 3940 (bearish) before entering. This ensures confirmation amid the current consolidation phase.

Market Performance:

Precious Metals Last Price % Change

XPTUSD 1,644.26 +0.16%

XAGUSD 49.5715 +0.36%

Today's Key Economic Calendar:

CA: Unemployment Rate

US: Michigan Consumer Sentiment Prel

Risk Disclaimer This report is for informational purposes only and does not constitute financial advice. Investments involve risks, and past performance does not guarantee future results. Consult your financial advisor for personalized investment strategies.

Related broker

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Fortune Prime Global
Company name:Fortune Prime Limited
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7.40
Website:https://fortuneprime.com/
10-15 years | Regulated in Australia | Regulated in Vanuatu | Market Making License (MM)
Score
7.40

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