XAU/USD Price Forecast: Learn about the short-term price movement of XAU/USD (Gold), Understand why the price might drop, key technical levels, and what to watch for in the gold market.
Why Is the Gold Price (XAU/USD) Under Pressure?
Right now, people are feeling positive about the economy, and this is putting pressure on the gold price, also known as XAU/USD. When people are optimistic, they don’t buy gold as much. Earlier, gold reached very high prices because people were worried about a slowing global economy and rising prices due to new taxes on imports (called tariffs). But without those tariffs, the fears are gone, and gold prices are dropping.
What Does the Daily Chart Tell Us?
When we look at the daily chart for XAU/USD, we see that the price has gone below an important level called the 20 Simple Moving Average (SMA), which is now flat. However, the price is still much higher than the 100 and 200 SMAs, which are still pointing up (bullish). Some tools, called technical indicators, are also moving down after crossing into a negative zone. This means the price might keep falling in the coming days.
What’s Happening on the 4-Hour Chart?
On the 4-hour chart, the price of XAU/USD is struggling around the 200 SMA, which is slightly pointing up. At the same time, a shorter 20 SMA has crossed below the 100 SMA near the $3,320 level, which is a sign the price might drop more. Another tool, the Momentum indicator, is also falling in the negative area. The Relative Strength Index (RSI), which measures if the price is too low or too high, is at 29 and not showing signs of stopping its fall. If the price breaks below the lowest point of the day, it could drop to the May low of $3,202.03. If it goes below that, the price might fall even more sharply.
- Price Movement and Moving Averages: The current price of gold is $3,223.97, down slightly by $0.37 (-0.01%). The chart includes three Exponential Moving Averages (EMAs): the 20 EMA (orange), 50 EMA (red), and 100 EMA (blue). The price has recently dropped below the 20 EMA ($3,287.81) and 50 EMA ($3,261.80), which is a sign that the price might keep falling. However, it’s still above the 100 EMA ($3,224.75), showing some support at this level.
- Key Levels to Watch: The chart shows the price is testing the 100 EMA around $3,224.75. If the price breaks below this, it could head toward a recent low of $3,213.08, seen earlier in May. On the upside, if the price moves back up, it might face resistance at the 20 EMA ($3,287.81) or 50 EMA ($3,261.80).
- Trend Direction: The overall trend looks downward in the short term because the price is below the 20 and 50 EMAs, and these lines are sloping down. The 100 EMA is still slightly rising, which means there’s some longer-term support, but the immediate direction seems to be a decline.
- What Might Happen Next: If the price breaks below the 100 EMA at $3,224.75, it could drop further to the May low of $3,213.08. If it falls past that, the price might decline more sharply. On the other hand, if the price climbs back above the 20 EMA, it could signal a short-term recovery.
Read what’s happening with the price of gold right now and what might happen next. Keep an eye on these levels if you’re interested in trading gold!
