Gold has moved lower, testing 4000.00 price level.
Further retesting of 3950.00 price level may occur at the
end of the current trading week, however next weeks fundamental data releases
may push further volatility in the market.
XAU/USD short-term forecast
On the 4-hour chart for XAU/USD remains in a clear
downtrend, guided lower by a strict descending trendline and a downward-sloping
60-period SMA (at 4188.313). The price is currently at 4049.985, staging a
short-term relief rally after finding firm support at the 3950.000 floor. While
this bounce could extend to test the immediate horizontal resistance at
4110.000, the overall bias is bearish; buyers must decisively break both the
4110.000 level and the trendline to signal a reversal, or risk another
rejection back down to 3950.000.
XAU/USD Daily chart
Daily chart for XAU/USD is in a clear bearish trend characterized by lower highs and lower lows that are constrained by a distinct descending trendline acting as dynamic resistance. This bearish momentum is reinforced by the price trading significantly below the downward-sloping 60-day Simple Moving Average (currently at 4520.462). The price is presently hovering around 4048.415, showing slight indecision in recent candles just above a critical horizontal support floor near 3950.000. Unless buyers can muster the strength to force a decisive daily close above the descending trendline, the path of least resistance remains downward, making a retest of the 3950.000 support level the most probable near-term scenario.Daily Candle Chart