Gold rally stalls below $3500 mark – Société Générale

Gold faces consolidation after stalling near $3500, with a lower high at $3435 and weakening momentum suggesting a temporary pause in the uptrend, Société Générale's FX analysts note.

Lower high at $3435 signals pause in momentum

"Gold up move has faced interim resistance near $3500 last month and formation of a lower high at $3435 denotes a pause is developing. Daily MACD has pulled back after reaching multi-month high levels and has dipped below its trigger line highlighting receding upward momentum."

"A brief consolidation can’t be ruled out. A move beyond $3435 will be crucial for confirming next leg of uptrend. Recent pivot low of $3200 and projection at $3140 are near term supports."