Gold Price Forecast: XAU/USD eases amid a better mood, retains the bullish stance

Valeria Bednarik FXStreet

XAU/USD Current price: $1,977.19

Government bond yields soared amid speculation of upcoming central banks’ decisions.
Speculative interest keeps an eye on the Middle East conflict for market direction.
XAU/USD retains its bullish potential despite easing demand for safety.

Spot Gold retreated from multi-month highs on Monday but met buyers on a dip to the $1,960 price zone. XAU/USD trades around $1,977 a troy ounce in the American session, trimming most of its pre-opening losses. Financial markets started the week with cautious optimism, as at least the Middle East conflict between Israel and Hamas did not escalate. Israel continues to delay a ground incursion into the Gaza Strip, hoping that Hamas will release more hostages.

Easing demand for safety weighed on the safe-haven metal and helped government bond yields to extend their rallies. The latter was also affected by speculation about monetary policies. On the one hand, Japanese government bond (JGB) yields rose to new multi-year highs as investors bet the Bank of Japan (BoJ) will adjust its yield curve control policy (YCC), when it meets next week. The 10-year JGB offered as much as 0.855%, its highest since July 2013. Meanwhile, the United States (US) 10-year Treasury note jumped to 5.02%, its highest since mid-2007, now down to 4.86%. The US Dollar remained on the back foot for most of the day, unaffected by the uptick in yields.

Meanwhile, speculative interest awaits first-tier events. The European Central Bank (ECB) will decide on monetary policy next Thursday, while the US will simultaneously release the first estimate of the Q3 Gross Domestic Product (GDP). On Friday, the US will release the September Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve (Fed) 's favorite inflation gauge.

XAU/USD short-term technical outlook

The daily chart for XAU/USD shows it trades just below Friday’s closing level, with bulls still in control. Technical indicators consolidate within overbought readings, losing their former upward strength but giving no signs of upward exhaustion. At the same time, the pair develops above all its moving averages, with the 20 Simple Moving Average (SMA) gaining bullish strength far below the longer ones.

In the near term, and according to the 4-hour chart, XAU/USD is neutral to bullish. The 20 SMA heads north below the current level, leading the way higher by acting as a dynamic resistance. The longer moving averages, in the meantime, gain upward traction far below the shorter one. Finally, technical indicators have stabilized well above their midlines after correcting extreme overbought conditions, somehow suggesting limited selling interest.

Support levels: 1,964.30 1,954.45 1,936.60

Resistance levels: 1,982.80 1,997.30 2,008.10

View Live Chart for XAU/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD gathers traction, approaches 1.1800

EUR/USD manages to reverse Tuesday’s pullback, advancing to two-day highs near the 1.1800 hurdle in the latter part of Wednesday’s session. The pair’s decent uptick comes on the back of the modest retracement in the US Dollar, as investors continue to closely follow developments on the trade front and news from the White House in the wake of President Trump’s SOTU speech.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

Crypto Today: Bitcoin, Ethereum, XRP test rebound strength as ETF inflows return

Bitcoin, Ethereum and Ripple are gaining traction at the time of writing on Wednesday, amid persistent market doldrums. The Crypto King is up over 2% intraday, trading above $65,000 from the day’s opening of $64,058.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.