Gold

The precious metal surged to a fresh 3-month high of $4,696 in the early Tuesday session before surrendering some gains. Although bullish momentum remains strong, the pair is overextended on the lower timeframe, raising concerns about the rally's sustainability and the potential for a pullback.

Key Indicators

• Technically, upward momentum continues, but lower-timeframe analysis suggests a potential pullback if the metal fails to sustain its momentum. This suggests a short-term decline may be imminent after this strong upside move. However, the overall structure is still bullish; any downside move looks like a pullback, not a trend change.

Fundamental Context

For the rest of the week, the main drivers for XAUUSD remain the US dollar, Fed policymakers' comments, geopolitical tensions, and May US core PCE numbers.