Further bullishness may continue due to ongoing inflation hedging.
XAU/USD short-term forecast
XAU/USD is showing a classic Bull Flag pattern, currently consolidating at 4207.63 after a strong rally to 4258.00. The price has pulled back in a controlled channel, finding support at 4175.00, while the RSI has cooled to a neutral 50, indicating balanced momentum. This setup suggests buyers may be preparing for another upward move. As long as 4175 holds, the bias remains bullish, with a potential breakout above 4258. Note that retail sentiment data is only available for GBP pairs, so positioning cannot be used to confirm this Gold setup.
XAU/USD daily charts review
Gold XAU/USD is in a major consolidation phase after a strong rally and rejection from its recent high near 4380.00. The price is currently around 4071.74, in the middle of the range between major support at 3880.00–3853.00 and resistance at 4235.00–4400.00. RSI is 56.69, showing a slightly positive bias but overall neutral momentum.Daily Candle Chart
Traders going long
This upside potential is supported by strong market conviction, as sentiment data shows 62.46% of traders are long, reflecting broad confidence among participants that the primary uptrend is ready to resume.