Gold Price Forecast: XAU/USD retreats, holds firmly above $2,920

XAU/USD Current price: $2,927.43

• United States President Donald Trump unleashed market concerns.
• The Federal Open Market Committee is about to publish the Minutes of the January meeting.
• XAU/USD retreats after reaching a fresh record, remains bullish.

Spot Gold hit a fresh all-time high on Wednesday, changing hands at as high as $2,947.06 during European trading hours. The bright metal resumed its advance as the market mood soured after headlines related to United States (US) President Donald Trump.

Trump kick-started conversations with his Russian counterpart, Vladimir Putin, to restore the relationship between the two nations and work on a peace agreement with Ukraine. Trump, however, suggested that Ukrainian authorities are responsible for the ongoing war between the two Eastern Nations, angering President Volodymyr Zelenskyy.

Market players are also concerned about US President Trump threatening to impose more tariffs on a wide range of goods coming into the US.

Stock markets changed course, and Wall Street trades in the red, following a record high in the S&P 500 on Wednesday. As a result, demand for the US Dollar (USD) is firmer across the FX board.

Meanwhile, the Federal Open Market Committee (FOMC) is about to release the Minutes of the January meeting. The document may shed light on policymakers’ thinking when they decided to keep interest rates unchanged while hinting at future monetary policy decisions.

XAU/USD short-term technical outlook

From a technical point of view, the daily chart for the XAU/USD pair shows it retreated from the aforementioned high, but the risk of a steeper slide remains limited. Technical indicators have barely retreated from extreme overbought readings and lack clear directional strength. At the same time, the pair develops far above all its moving averages, with a bullish 20 Simple Moving Average (SMA) providing dynamic support at around $2,845.00.

In the near term, and according to the 4-hour chart, the ongoing slide seems corrective, as despite retreating, XAU/USD remains above all its moving averages. A flat 20 SMA lies at around 2,913.05, providing immediate support, while the 100 and 200 SMAs maintain their upward slopes below it. Finally, technical indicators head lower but remain within positive levels, all of which limits the odds for a relevant downward extension.

Support levels: 2,913.05 2,909.60 2,897.10  

Resistance levels: 2,947.10 2,960.00 2,975.00