Lower levels of volatility should be considered the primary scenario for gold.
XAU/USD short-term forecast
Price of Gold is currently consolidating just below the immediate resistance and recent high of 3487.00. Given the powerful underlying trend, the most likely scenario is a continuation, where buyers push for a sustained break above this level to initiate a new leg higher. However, a deeper corrective pullback is also possible, with the primary support target being the former resistance and breakout zone at 3430.00. As long as the price holds above this key support area, the overall bullish structure would remain intact, and a pullback would likely be viewed as a buying opportunity by trend-followers.
XAU/USD daily charts review
The former resistance zone between 3410.00 and 3450.00 now becomes the most critical support floor. For the bullish trend to continue, the price must hold above this area. The primary expectation is for a continuation of the uptrend, potentially after a brief pullback to successfully test this new support, with the next major target being the previous spike high around the 3550 level. Conversely, a bearish scenario would involve the price failing to sustain its gains and falling decisively back below 3450.00.The outlook will remain neutral until a decisive breakout from this range occurs.
Daily Candle Chart
Traders going long
Continuing previous weeks bullish momentum 51.60 % of volume was in long positions.
In the 1000 point range around the latest price, the pending orders were 16 % to sell the metal.