Lower levels of volatility may be considered as a primary scenario.
XAU/USD short-term forecast
XAU/USD is currently around 5003, stuck in a neutral, sideways range after dropping from the 5600 highs. Resistance is at 5090, which if broken could lead toward 5300+, while support lies between 4950 and 5000, and a break below that could push prices toward 4793. Momentum is flat, with the RSI around 50, meaning neither buyers nor sellers are in control. A potential strategy is to go long if the price closes above 5010 or short if it drops below 4995, but expect erratic swings this week due to the Chinese Lunar New Year.
XAU/USD daily charts review
XAU/USD is currently trading around 5003 and is in a consolidation phase after a sharp sell-off from the 5600 level in late January. The price has been moving sideways between approximately 4895 and 5115, showing indecision and no clear directional momentum. Resistance is near 5115, where the price has previously struggled to break higher, while support is around 4895, a level where price found a bounce after earlier drops. The current price sits near the middle of this range, reflecting a neutral zone.Further inflationary pressures and elevated levels of uncertainty may provide bullish bias of the precious metals price in the near term.
Daily Candle Chart
Traders going long
XAU/USD, most traders are currently bullish, with about 73% holding long positions. This strong buying sentiment has surged recently, increasing by over 45%.