Key Levels Decide Dollar Pullback and Gold Bounce Direction

The U.S. Dollar Index (DX.F) is experiencing a pullback after reaching a critical resistance zone, which includes the upper boundary of a multi-week rising wedge and the 50% Fibonacci retracement of the decline between January 2025 and February 2026. This resistance area has prompted a short-term correction, with bears testing the June and July highs broken last week. The next move hinges on the daily close: holding above 101.49-101.57 suggests another potential upswing, while a close below could invalidate the breakout and push the Dollar toward support at 101.11-101.26.

Gold (GC.F) has found support at the 4098-4135 zone, reinforced by a bullish gap from early August and the 78.6% Fibonacci retracement. Buyers have pushed prices back above the psychological 4200 mark, but the real challenge lies ahead as Gold approaches resistance from a declining channel and a short-term downtrend line. A break above these levels would confirm a stronger bullish move, while a daily close below 4100 would weaken the recovery scenario.

Other metals like Silver, Platinum, Palladium, and Copper are also near key decision zones, awaiting confirmation of their next moves. The market's theme today is clear: reactions are not the same as confirmations. Patience and respect for key levels are crucial before committing fresh risk.