Continuing previous weeks trend, in the absence of significant geopolitical developments, lower levels of volatility should be considered the primary scenario for gold. The likelihood of increased volatility remains low under current conditions.
XAU/USD short-term forecast
After a recent strong upward trend, the price failed to hold its highs around the 3440.00 level and has since reversed into a sharp, short-term downtrend. The price is currently trading around 3362.50, putting pressure on nearby support levels. This bearish sentiment is strongly supported by the key indicators. A significant signal has occurred as the faster 30-period Simple Moving Average has crossed below the slower 60-period SMA. The price is now trading below both of these moving averages, reinforcing the negative momentum.
XAU/USD daily charts review
For months, Gold has been stuck in a wide trading range between support at 3253.00 and a resistance ceiling at 3450.00 This means the price has been bouncing between these two levels without a clear long-term trend.Daily Candle Chart
Traders going long
Continuing previous weeks bullish momentum 52.30 % of volume was in long positions. Traders are still going long.
In the 1000 point range around the latest price, the pending orders were 18 % to sell the metal.