Gold Price Forecast: XAU/USD holds above $2,660 with a soft tone

Valeria Bednarik FXStreet

XAU/USD Current price: $2,663.89

In the absence of macroeconomic figures, sentiment leads the way across financial boards.
Fresh UK and US inflation data and President-elect Donald Trump in the eye of the storm.
XAU/USD trades with a soft tone and could reach lower lows in the near term.

Spot Gold is on the back foot on Monday amid persistent US Dollar’s (USD) demand. The XAU/USD hit a multi-week high of $2,697.88 on Friday, as a solid United States (US) monthly employment report spurred risk aversion. The Nonfarm Payrolls (NFP) report showed the country added 256,000 new jobs in December, while the Unemployment Rate edged lower to 4.1%. The figures were upbeat. Even further, Average Hourly Earnings rose by 3.9%, easing from the previous 4%. The combined headlines hint at an on-hold Federal Reserve (Fed) for longer.

Demand for safety equally benefited Gold and the Greenback at the end of the previous week, yet persistent USD demand finally took its toll on XAU/USD, now trading at around $2,665. In the absence of relevant macroeconomic data, the focus remained on sentiment, and stocks’ behaviour. Asian and European indexes closed in the red, while Wall Street trades mixed: only the Dow Jones Industrial Average trades in the green after collapsing on Friday, while the S&P500 and the Nasdaq Composite remain in the red.

Meanwhile, the focus this week will be on inflation. The United Kingdom (UK) and the US will release fresh Consumer Price Index (CPI) figures next Wednesday. Market participants will also be waiting for President-elect Donald Trump and tariffs updates.

XAU/USD short-term technical outlook

From a technical point of view, the daily chart for the XAU/USD pair shows sellers have gained courage, yet at stepper decline is far from evident. The pair remains above all its moving averages, although a mildly bearish 20 Simple Moving Average (SMA) converges with a bullish 100 SMA at around $2,635. Technical indicators, in the meantime, turned sharply lower, yet remain within positive levels.

In the 4-hour chart, Gold is developing below its 20 SMA, which lost its bullish strength and provides resistance at around $2,672. The 100 and 200 SMAs, in the meantime, remain flat below the current level. Finally, technical indicators head firmly south, pressuring their midlines straight from overbought readings, suggesting the near-term slide could continue.

Support levels: 2,660.70 2,645.15 2,635.00

Resistance levels: 2,672.20 2,683.20 2,697.90

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.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.