Spot gold looks ready to extend an uptrend while poppin’ up long wicks near a previous resistance area.

In case you missed it, risk aversion was the name of the game yesterday as traders worried about global growth and the Fed possibly needing more interest rate cuts to avoid a hard landing.

U.S. 10-year Treasury yields fell sharply even as the safe haven U.S. dollar maintained its multi-day highs.

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

Spot gold, which turned lower from its $2,525 all-time high, hit bottom at $2,475 before making its way back to the $2,500 area.

Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on gold and market sentiment, then it’s time to check out the economic calendar and stay updated on daily fundamental news!

Will gold prices extend its multi-month uptrend this week?

Note that XAU/USD found support from the S2 ($2,473) Pivot Point area that lines up with a major resistance level in late July and early August.

A couple more bullish candlesticks and sustained trading above the S2 and S1 Pivot Point lines may set XAU/USD up for a possible bounce from the 4-hour chart’s 100 SMA. And, if there’s enough momentum, the precious metal could return to its $2,525 previous highs.

But if this week’s themes push the U.S. dollar higher, or if the previous resistance area doesn’t hold as support, XAU/USD could revisit lower areas of interest. Gold prices can ease to $2,450 near the 200 SMA or the $2,440 levels closer to a longer-term trend line support.

What do you think? Which way will gold prices go in the next trading sessions?