Lower levels of volatility may persist throughout the week.
XAU/USD short-term forecast
Gold is currently in a consolidation phase trading sideways near 4341.125 following a significant vertical rally. The price action has defined a clear trading range with major resistance capping the upside at the psychological 4400.00 level while immediate support is established at 4260.00. The MACD indicator in the bottom panel reveals that momentum is cooling off as indicated by the red histogram and downward crossover which suggests the market is pausing to digest recent gains. Consequently, the broader bullish trend remains intact provided the price holds above 4260.00 but a decisive breakout above 4400.00 is required to signal the next leg higher.
XAU/USD daily charts review
Gold is maintaining a robust bullish trend trading near 4335.075 with the RSI indicator reading 65.429 which suggests that upside momentum is strong but not yet overextended. The price is currently facing a major resistance ceiling at 4400.0000 while the 4235.0000 level serves as the critical support floor protecting the recent gains. A successful breakout above 4400.0000 would clear the path for a continuation toward the 4580.0000 target whereas a breakdown below the 4235.0000 support would risk a deeper correction toward the 3953.0000 structural level.Daily Candle Chart
Traders going long
The continuation of bullishness is reflected in the overall trade sentiment.