Gross domestic Product data in Europe may re-evaluate gold positioning, also, risk-on approach in single stocks during this weeks earnings may provide additional volatility.
XAU/USD short-term forecast
Gold is showing a strong upward trend but is currently in a pause or consolidation phase as buyers and sellers balance each other near recent highs. The price has risen sharply from earlier levels, and technical indicators suggest it is overbought, meaning the easy gains may have been made for now. Because of this, the market could either move sideways for a while or pull back to a key support level before attempting another push higher toward the next major resistance.
XAU/USD daily charts review
Gold is in a very strong uptrend, recently breaking past the important 5000.00 level with strong buying pressure. The current price is around 5093.00, but the market looks overbought with an RSI near 79, meaning a pullback or sideways pause is likely soon. Key support is now at 5000.00, which should hold if tested, while the next big target is 5700.00. Traders should be cautious about buying at these high levels and consider waiting for a dip or consolidation before entering.Daily Candle Chart
Traders going long
Trader sentiment is strongly bullish, with about 72% of traders going long and only 28% short. This suggests most traders expect gold prices to continue rising, reflecting confidence in the current upward trend.