Volatility may occur towards weeks end if Gross Domestic product data see deviations from forecasted numbers.
XAU/USD short-term forecast
Gold is in a strong bullish uptrend and is currently pausing near its recent high of 3721. The trend is confirmed by a recent "golden cross" of its moving averages. However, the momentum indicator (RSI) is in the overbought zone, which suggests the rally could be due for a rest or a minor pullback. The first key support to watch on any dip is the 3687.00 – 3700.00 area.
XAU/USD daily charts review
After breaking out from a long period of consolidation, the price has continued to climb, showing powerful buying momentum. The RSI indicator is high, confirming this strength, though it also suggests the rally might be overextended. The next major resistance target is 3800.00. The previous resistance area, between 3410.00 and 3450.00, is now the key support zone to watch.Daily Candle Chart
Traders going long
Gold trade sentiment is currently bearish, with only 42.72% of the total trade volume reflecting bullish positions. This means the majority—57.28%—of traders are taking bearish positions, indicating a general market expectation that gold prices may decline in the near term.