The renewal of tariffs by Donald Trump may increase overall market risk, potentially leading to higher volatility in the shorter time frame.
XAU/USD short-term forecast
XAU/USD has been in a strong bullish trend, but several signs suggest a bearish reversal may be near. The price recently spiked above 4664.00 but was quickly rejected, showing weak buying pressure. 4700.00 is a key resistance level, and failing to sustain a move above it often leads to a decline.
The RSI is at 61, with bearish divergence forming as the price makes new highs while the RSI peaks lower, signaling weakening momentum. The price is well above the longer-term moving average around 4566.00, suggesting a potential pullback. If the price drops below 4627.00, it could confirm short-term bearish momentum. Key support levels include 4627.00 and 4580.00 to 4565.00. A break below 4565.00 would signal a stronger bearish move, with 4503.00 as the next support.
XAU/USD daily charts review
Gold remains in a clear long-term uptrend, currently trading near 4,663. However, several signals suggest that the rally may be nearing exhaustion. The price is hovering just below a major psychological and technical resistance at 4,800. Round numbers like this often act as profit-taking zones. Additionally, the RSI is showing a bearish divergence. Since October, Gold has made a series of higher highs, but the RSI has failed to keep pace, forming lower highs. This divergence indicates that while the price is rising, the momentum behind the move is weakening, which is a classic bearish signal.While the overall trend is still bullish, there are several risks that could trigger a sharp correction.Daily Candle Chart
Traders going long
Currently, 71.56% of traders are long, betting the price will rise, while 28.44% are short, betting the price will fall.