Further volatility may persist in the metals market throughout the week.
XAU/USD short-term forecast
Technical analysis shows a neutral market in a consolidation phase, with the live price at approximately 4007. The price is currently squeezed in a tight sideways range, pinned between the 30-period SMA red line acting as support and the 180-period SMA green line acting as resistance. This price squeeze is happening right at the critical 4000 psychological level. The RSI indicator is at 53, a neutral reading that confirms this market indecision. The most important support is the 4000 level; if it breaks, the next support is 3887.40. The immediate resistance is the 180-SMA at roughly 4025 to 4030; if that breaks, the next resistance is 4080. A bullish breakout above 4030 would target 4080, while a bearish breakdown below 4000 would target 3887.40.
XAU/USD daily charts review
In the daily candle chart, the technical analysis shows that the long-term bullish trend is in a sharp bearish correction. Live price check: The current price of XAU/USD is approximately 4007. After a powerful rally, the price was strongly rejected at the 4400.00 peak, confirmed by an extreme "overbought" reading on the RSI indicator. This rejection triggered a significant sell-off, breaking below the 4235.00 support level. The price has now found a temporary "floor" at the 3953.00 support level and is consolidating in a sideways range, which is confirmed by the RSI indicator's neutral reading of 57.194. The critical levels to watch are the 3953.00 support and the 4235.00 resistance, which is old support. A daily close below 3953.00 would signal a continuation of the bearish correction, likely targeting the 3800.00 support. Conversely, if the 3953.00 support holds, buyers would need to break back above 4235.00 to suggest the pullback is over and the bullish trend is resuming.Daily Candle Chart
Traders going long
Gold's bullish sentiment may be driven by massive central bank buying, and geopolitical uncertainty, making it a key safe-haven asset.