Gold Price Forecast: XAU/USD aims to regain the ground lost

XAU/USD Current price: $4,359

• Wall Street is under pressure for a second consecutive day amid heightened caution.
• The Federal Open Market Committee will release the Minutes of the December meeting.
• XAU/USD aims to regain its bullish tone after Monday's collapse.

Spot Gold tries to regain its bullish poise on Tuesday, trading above $4,350 after bottoming at $4,300 on Monday. The XAU/USD pair edged sharply lower after reaching an all-time high at the beginning of the week amid profit-taking ahead of the New Year’s holiday. The bright metal benefits from a risk-averse environment, although the advance is tepid amid resurgent US Dollar (USD) demand.

Wall Street is under pressure for a second consecutive day, although the slide is more linked to the lack of news than to a negative headline. Pretty much, investors are closing their books for the year as most financial markets will be closed on Wednesday, with market activity resuming on January 2.

A pinch of caution adds to the USD near-term advance ahead of the release of the Federal Open Market Committee (FOMC) minutes of the December meeting. The document will be released in the mid-American session and could shed some light on the next Federal Reserve (Fed) monetary policy steps. The release may trigger near-term movements due to the ongoing lack of trading volume, but is unlikely to have a sustained impact, as market players are patiently waiting for United States (US) President Donald Trump to name the next Chair to go full in.

 XAU/USD short-term technical outlook

In the 4-hour chart, XAU/USD trades at $4,358.16 and aims to extend its slide. The 20-period Simple Moving Average (SMA) has turned lower above the current level, providing dynamic resistance at $4,445.70. Still, the 100- and 200-period SMAs remain below spot with modest upward slopes, at $4,339.52 and $4,240.55, respectively. At the same time, the Momentum indicator aims lower below its midline, while the Relative Strength Index (RSI) indicator also aims south at 37, in line with a continued slide.

In the daily chart, however, the downward potential of XAU/USD seems limited. The 20-day SMA continues to provide relevant support at $4,315, while rising above the 100- and 200-day SMAs, which maintain their bullish slopes. The Momentum indicator edges higher above its midline, while the RSI indicator advances at around 56, suggesting buyers paused but did not give up. The broader trend backdrop remains positive as the 100- and 200-day SMAs continue to slope higher, and the bullish tone would persist as long as the price holds above the 20-day SMA at $4,315.

(The technical analysis of this story was written with the help of an AI tool)