Furthermore, the XAU/USD pair displays a sign of resilience as it continues to trade above the $3,200 level. This trend continues into the American trading session, a testament to gold’s relative strength versus the US dollar. Earlier in the day, the pair passed its former record high by a few cents. As risk appetite recovered, the dollar came under increasing downward pressure. This volatility underlines the complex forces shaping gold prices in the context of rapidly evolving economic changes.
The other side of the coin was that on Friday the XAU/USD currency pair stayed in its well-defined range. After a rally that took it to all-time highs above $3,250, the pair found itself coming under fresh selling pressure. Today’s pattern of trading suggests a step-backward day, driven at least in large part by the broader market boom mood. By all appearances, investors have begun to focus elsewhere, helping drive the gold price back down from its recent high.
The XAU/USD pair is now back to facing notable resistance at the $3,200 mark as of Monday. This price point has turned into a key point of focus for traders as they look to survive the volatile market environment. Price action shows that the recent price uptrend has stabilized. Yet fears over US tariffs have limited gold’s upside potential.
Let’s get a detailed technical analysis to understand how much longer this downward correction in the XAU/USD pair will last. This observation was made based on the 4hr chart. The momentum indicator is perhaps the most bullish it has looked, recently ticking impressively higher above the 100 line after previously crashing into extreme oversold territory. Market sentiment This development reflects an overall change in market sentiment that is likely bullish for prices in the short-term.
We know, we’re sorry too… but this is going to be awesome! The Relative Strength Index (RSI) on the XAU/USD pair is settling near 63, indicating a healthy market equilibrium. Additionally, the 20 Simple Moving Average (SMA) is bullish and offers key support at around $3,170.90. This support level happens to be reinforced by an upward trajectory of both the 100 and 200 SMAs. As a result, traders will have increased confidence in gold’s ability to maintain its value. Those are the classic indicators that it’s going to continue to remain above important supports.
On the downside, we have found the immediate support levels for the XAU/USD pair at $3,193.30, $3,181.15, and $3,170.90 respectively. Further, resistance levels are at $3,215.40, $3,231.60 and $3,245.75. The price action of the XAU/USD pair is all over the place. With prices now clawing back above these important thresholds, it is definitely flying back and forth between them.