Overall volatility may rise volatility in metals this week as market participants will make re-assessments regarding risk.
XAU/USD short-term forecast
Gold is currently trading at 5094.65 and is in a consolidation phase after a recent downtrend. The market is pausing and looking for direction. The major resistance is at 5350, which was previously support and now acts as a long-term ceiling. Immediate resistance is around 5150, where recent highs have seen selling pressure. The main support is at 5010, and a break below this could push the price down toward 4900. A deeper support level exists at 4820, acting as a safety net if the bearish trend accelerates.
Price action shows sideways movement with shrinking candles, indicating a coiling effect and potential for a sharp move. Recovery attempts are forming lower highs near 5150, suggesting that bears still have the upper hand.
XAU/USD daily charts review
Gold is currently in a consolidation phase after a period of high volatility. In late January and early February, it spiked toward 5555.00 but was quickly rejected, forming a long-term psychological ceiling. Since then, the price has been moving between 4820.00 support and 5350.00 resistance. Recent candles show a lower high compared to the March 1 peak and small-bodied candles around 5096.39, indicating indecision and a temporary equilibrium.Key levels to watch are 5350.00 as major resistance, 5096.39 as the current pivot point, 5010.00 as immediate support, and 4820.00 as strong support. The RSI sits at 55.44, in neutral territory but slightly trending downward, suggesting bullish momentum is cooling.
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
Gold shows a strong bullish bias among retail traders, with 74% of participants currently holding Long positions compared to only 26% in Short positions.