GOLD Price News: Nears $3,600 But Risks Sharp Correction Ahead

Gold has been on quite the journey lately, pushing higher and higher as investors seek shelter from economic uncertainty. But sometimes what goes up fast can come down just as quickly. With gold now knocking on the door of $3,600, some smart traders are starting to ask whether this rally might be running out of steam. The bigger question isn’t just about price levels – it’s about what kind of economic storm might be brewing ahead.

Gold (XAU) Price Climbs Toward Resistance

Gold has been on a solid run, pushing up toward that $3,600 mark and hitting a session high of $3,597. This climb has been going on for weeks now, with investors piling into hard assets because, frankly, the global economy feels pretty shaky right now.

But here’s where it gets interesting – the charts are starting to tell a different story. Gold looks like it might be running out of steam in its current upward wave. The RSI is sitting around 72, which is pretty high and usually means things are getting a bit overheated. When you see numbers like that, it often means a pullback is coming.

Trader @mdtrade has been raising some eyebrows with his take on what’s coming next. He’s not buying into the idea that this recession will be the inflationary kind we’ve been worried about. Instead, he thinks we’re heading for deflation – and that changes everything, even for gold.

His argument is pretty straightforward: we’re seeing gold’s “final thrust higher” right now, but after this, things could get ugly fast. Even though everyone thinks of gold as the ultimate safe haven, in a deflationary mess, even precious metals can take a beating. If he’s right, that $3,600 level we’re approaching might end up being the top before prices start heading south.

Outlook: Can Gold (XAU) Price Hold Gains?

If gold can actually break through $3,600 with conviction, then we’re looking at potential targets around $3,650 and $3,700. But if it fails to hold above these levels, we could be looking at the start of a correction that sends prices tumbling back toward the $3,400–$3,500 area.

The big picture stuff really matters here. We’ve got slowing growth, inflation that won’t quit, and central banks still tightening the screws. All of this is making markets jumpy. If we really do get hit with a deflationary recession, it would crush demand for commodities and hard assets across the board. That would be bad news for gold, even after this impressive rally.