Volatility may rise in metals this week as well.
XAU/USD short-term forecast
XAU/USD 1-hour timeframe, price action is showing a meaningful attempt at a trend reversal despite the broader context still being bearish. The market has been trading within a well-defined descending channel, where the upper boundary has consistently acted as dynamic resistance and the lower boundary around 4150.00–4200.00 has provided support. The latest bounce originated from this lower zone, and price is now testing the upper trendline near 4475.00. A sustained move and close above this level would indicate a potential shift toward bullish structure.
XAU/USD daily charts review
Price is around 4417.00 after bouncing from a low near 4100. That long lower wick suggests buyers are trying to defend the 4235 support area, but the bounce is still weak and not a confirmed reversal. The level around 4700 has now become important resistance — if price can't get back above it, the market remains under bearish control.The RSI near 35 shows the market is getting close to oversold, but not quite there yet. More importantly, momentum is still pointing down, so there's no clear signal of a reversal yet — just a possible temporary pause or small bounce.
Daily Candle Chart
Traders going long
Sentiment is often interpreted using a contrarian approach, meaning when the majority is positioned long, the market frequently continues moving downward.