Further volatility may persist in the metals market throughout the week.
XAU/USD short-term forecast
Technical outlook has become even more bearish. The most significant development is the decisive break and close below the critical 4000.00 support level, which had previously been holding. This breakdown confirms the strong downward trend. This trend is further reinforced by the price trading well below both the 30-period SMA, the red line near 4058.586, and the 180-period SMA, the green line near 4180.891. Bearish momentum is strong, as indicated by the RSI 30 indicator which has fallen to approximately 37.288. While this is approaching oversold territory, it primarily signifies dominant selling pressure. With the 4000.00 level now breached, it is expected to act as the new, immediate resistance on any pullback.
XAU/USD daily charts review
XAU/USD daily chart shows the pair in a strong uptrend, but it recently experienced a sharp bearish reversal after peaking above 4400. The price has broken through the 23.60% at 4208.05 and 38.20% at 4098.11 Fibonacci support levels, which may now act as resistance on any bounce. It is currently testing the critical 50.00% Fibonacci retracement support at 4009.26, a key market decision point. If buyers defend this level, the correction may be over and the long-term uptrend could resume. A decisive daily close below 4009.26 would signal the correction is not finished, opening the path toward the next major support at 3920.41.Daily Candle Chart
Traders going long
Gold's bullish sentiment may be driven by massive central bank buying, expected US interest rate cuts, and geopolitical uncertainty, making it a key safe-haven asset.