Gold Price Forecast: Losing steam but holding above $1,800.00

Valeria Bednarik FXStreet

XAU/USD Current price: $1,811.22

US indexes flirt with record highs after more encouraging US macroeconomic data.
The US Richmond Fed Manufacturing Index improved from 11 to 16 in December.
XAU/USD retreated from a fresh one-month high, could turn bearish in the near term.

Spot gold reached an intraday high of $1,820.25 a troy ounce, its highest in over a month, later trimming gains. The American dollar met demand with Wall Street’s opening, helped by encouraging US data and subdued government bond yields. The Richmond Fed Manufacturing Index improved from 11 to 16 in December. At the same time, US indexes kept rallying, with the S&P reaching a fresh record high and the DJIA nearing its all-time maximum.

The good mood has little backup, although market participants keep hoping the coronavirus Omicron variant may be the end of the pandemic, as it seems to be far less deadly than its precursors. Despite the record number of daily contagions, the death toll remains low, and the US and the UK have dismissed changes of new restrictions, at least in the near term.

Gold price short-term technical outlook

The daily chart for the XAU/USD pair shows that it may change course in the upcoming sessions, as the daily candle shows a long upper wick, following a three-day rally. In the mentioned time frame, the bright metal continues to develop above a congestion of directionless moving averages, while technical indicators are flat just above their midlines.

In the near term, and according to the 4-hour chart, gold is losing bullish steam, not yet confirming a bearish continuation. The 20 SMA is crossing above a flat 200 SMA, both in the 1,806 price zone, while the 100 SMA maintains a modest bullish slope at around 1,787. In the meantime, technical indicators continue retreating within positive levels with limited directional strength. The bearish case will be firmer on a break below 1,803.00, the immediate support level.

Support levels: 1,803.00 1,791.80 1,782.10

Resistance levels: 1,814.20 1,822.90 1,832.75

View Live Chart for the XAU/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD seems vulnerable near 0.6800, 10-month low amid bullish USD

AUD/USD languishes near a 10-month low during the Asian session on Friday, awaiting a break below 0.6800 before the next leg up amid a bullish US Dollar. Firming Fed rate-hike expectations, along with fading hopes for US-Iran diplomacy, help the USD hold gains at its highest level since April 2025. Moreover, the RBA’s dovish tilt undermines the Aussie and backs the case for further losses.

USD/JPY bulls turn cautious near 160.00 amid intervention risks

USD/JPY enters a bullish consolidation phase around its highest level since early September as bulls turn cautious amid intervention risk near 160.00. Meanwhile, the downside seems cushioned as the wide US-Japan interest rate gap keeps the Yen carry trade active. Furthermore, the possibility of a jumbo Fed rate hike and Middle East uncertainties hold the US Dollar near a 19-month top, supporting the currency pair.

Gold remains on the back foot below $3,900

Gold now alternates gains with losses below the $3,900 mark per troy ounce on Friday. The precious metal struggles to regain traction amid the firmer US Dollar, mixed US Treasury yields and expectations of further tightening by the Fed at its December meeting.

Bitcoin just posted five straight losing weeks, and the storm may not be over yet

Bitcoin is struggling to find support, slipping below $70,000 as multiple headwinds threaten to push the Crypto King lower. The much-anticipated “Uptober” rally failed to materialize, with persistent selling pressure and widespread liquidations instead reinforcing the “Rektober” narrative.

Week ahead – Fed Minutes, inflation data and Nvidia earnings to guide investors

Fed minutes may add to hawkish tone as bets of 50-bps hike grow. Nvidia to report earnings as bar to impress high after spy scandal. Trade and geopolitics to be focal point of Trump-Xi summit.

Gold hit its lowest level of 2026 near $3,850

Gold (XAU/USD) attempts to stabilize around $3,890 on Friday after falling to $3,852 on Thursday, its lowest level since October 2025. The precious metal has lost more than 4% this week, as investors increasingly anticipate further monetary tightening from the Federal Reserve (Fed). The latest decline reflects a sharp change in market expectations.