Overall U.S. dollar weakness helped propel spot gold to its multi-week highs.

Will a technical resistance level encourage a bearish turn for the commodity?

Or will we see a breakout in the subsequent few days?

Gold (XAU/USD) 4-hour Chart by TradingView

In case you missed it, speculations of Fed rate of interest cuts weighed on the U.S. dollar for many of this week.

Spot gold, a preferred alternative to the dollar, prolonged an uptrend that began in late June and is now trading near the $2,400 area.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. When you haven’t yet done your fundie homework on gold and the U.S. dollar, then it’s time to ascertain out the economic calendar and stay updated on day by day fundamental news!

Note that $2,400 is near the R1($2,416) Pivot Point line within the 4-hour timeframe. More importantly, it’s right around a resistance level that held twice since April.

Are we the tip of XAU/USD’s bullish run? The pair is already sporting tall wicks across the R1 resistance.

Sustained trading below $2,400 followed by bearish candlesticks could help drag XAU/USD right down to the $2,367 mid-range and Pivot Point area. And, if fundamentals encourage a bearish momentum, we might even see XAU/USD retest its $2,290 range support zone.

After all, gold bugs may be taking a breather. Look out for bullish candlesticks above the R1 and R2 Pivot Point lines, which may lead to XAU/USD breaking above its months-long range.

Good luck and good trading this one!