Friday's increase in market volatility pressured gold prices
to the downside, with the metal settling near the 4330.00 level.
Looking ahead, expectations for further interest rate hikes
could challenge gold's appeal as an inflation hedge throughout the remainder of
2026. While the latest Commitment of Traders (COT) report indicate a notable
increase in net-long positioning among market participants on a week-over-week
basis, the prospect of tighter monetary policy may serve as a key fundamental
catalyst for additional selling pressure and a broader shift toward bearish
sentiment.
XAU/USD short-term forecast
4-hour XAU/USD chart demonstrates a well-defined bearish trend characterized by a sequence of lower highs and lower lows, tightly bound beneath a descending trendline resistance. Price action recently experienced a sharp acceleration downward after failing to hold above the 4,460.00 horizontal level, driving the current price down to 4,294.71. This aggressive sell-off is backed by a notable surge in volume, confirming strong institutional or market participation behind the move. Meanwhile, the RSI (60) has dipped significantly into bearish territory at 37.51, reflecting strong downward momentum without quite reaching extreme oversold conditions yet.
XAU/USD weekly chart review
XAU/USD chart shows a clear breakdown of previous upward momentum, transitioning into a bearish correction. Price action has definitively broken below the 26-period Simple Moving Average, which sits at 4690.61, transforming this dynamic line from support into potential overhead resistance. The current weekly candle closed near its lows at 4296.07, testing a critical horizontal support level marked by the red dashed line around 4296. This bearish outlook is strongly reinforced by the MACD. If the immediate support at 4296 fails to hold, the next major historical floor rests significantly lower at the 4000.00 horizontal boundaryWeekly Candle Chart
Traders going long