Gold prices (XAU/USD) are today seeing a sharp downward move. Specifically, they’re retreating from a recent high-water mark just below the $4,900 threshold, which is a new all-time high for them. The yellow metal continued to slide throughout the Asian trading day on Thursday, ending a three-day run of gains. This downturn has been an exceptionally healthy one, underpinned by positive forces like reducing geopolitical tensions and a changing marketplace.
The Moving Average Convergence Divergence (MACD) line for gold is now below the Signal line. Both measures are currently sitting below zero. Technically speaking, this is a sign that the bullish momentum is starting to fade. A contracting negative histogram indicates that bearish momentum is weakening. This transition may cause cautious traders to re-evaluate the market, resulting in additional price corrections.
Overbought conditions on short-term charts just added pressure on gold prices while coming in. Further convincing push past the pivot point should strengthen the bullish sentiment for XAU/USD. If prices flip below the first support line, the 50% Fibonacci retracement at $4,712.29 might be tested. The 38.2% Fibonacci retracement level at $4,754.08 offers the first support number. The 23.6% level, at $4,805.79, serves as a near-term pivot.
As US President Donald Trump indicates with his recent surprise U-turn on Greenland, this decision has calmed geopolitical uncertainty, which tends to make safe-haven assets gold especially more attractive. This trend has played a role in reducing gold demand driven by the safe haven trade. Furthermore, the market’s optimism that trade conflicts with Europe are unlikely to escalate further has undermined gold’s appeal.
Market participants were looking ahead to the November US Personal Consumption Expenditure (PCE) Price Index, which is due out later on Thursday. As they state up high, this report should provide a critical window into the Fed’s future policy decisions. It will include analyses of how those decisions may be influencing the gold price. The final report on US Q3 GDP growth is expected to significantly influence USD price dynamics and offer fresh directional impetus for gold.
Market participants are already wagering on two additional rate cuts from the Federal Reserve in 2026. This inflation hawkish expectation has the potential to move gold prices dramatically. Concerns surrounding political interference in the Fed’s independent rate-setting process continue to cap the USD, thereby affecting gold’s performance in the market.