Lower levels of volatility should be considered the primary scenario for gold; however, retail sales numbers could elevate overall market volatility if signs of consumer weakness emerge.
XAU/USD short-term forecast
Gold chart shows a new short-term bullish bias. After being stuck in a sideways range, the price recently staged a powerful breakout to the upside and has now successfully retested the old resistance level around 3359.25, which has flipped to become new support in a strong bullish confirmation. This bullish sentiment is backed by the indicators; a "golden cross" has occurred with the moving averages, and the RSI remains strong above its 50 midline, showing that bullish momentum is still in control. The critical support to watch is the 3359.25 level. As long as the price holds above this area, the outlook is bullish, with the next objective being a break of the recent high at 3372.60 to target the major resistance at 3410.00.
XAU/USD daily charts review
The daily chart for Gold shows a prolonged period of sideways consolidation following a strong prior uptrend. The market is currently directionless, trading within a well-defined range between the major support at 3285.00 and a strong resistance zone of 3410.00-3450.00. This neutrality is confirmed by the Relative Strength Index (RSI), which is hovering around the 50 mark and indicates a balance between buyers and sellers.The outlook will remain neutral until a decisive breakout from this range occurs.
Daily Candle Chart
Traders going long
Continuing previous weeks bullish momentum 58.60 % of volume was in long positions.
In the 1000 point range around the latest price, the pending orders were 17 % to sell the metal.