Gold Price Forecast: XAU/USD stable around $3,300 as the mood improves

XAU/USD Current price: $3,332.42

• A better mood keeps market players away from safe-haven assets.
• United States data was mixed, yet Wall Street extends its recent rally.
• XAU/USD struggles to recover its bullish momentum despite back above $3,300.

Gold price recovered the $3,300 mark late on Wednesday, extending its recovery up to $3,367.67 in the early Asian session. The XAU/USD pair, however, retreated from such a high and spent most of the day consolidating in the current $3,330 area, as a better market mood keeps safe-haven assets out of investors’ radar.

Sentiment was mixed throughout the day, with caution present through the Asian and European sessions amid headlines coming from China, indicating that there were no ongoing discussions with the US on tariffs, according to a Ministry of Commerce Spokesperson.

Market players reduced expectations of a deal coming up, despite United States (US) President Donald Trump stating a meeting with China on trade issues was held in the American morning.

Wall Street shrugged off the negative tone of its overseas counterparts, with major indexes extending their advances and holding on to gains at the time of writing, which further draws attention from safe-haven Gold.

Meanwhile, the US released a slew of mixed macroeconomic data. Durable Goods Order improved to 9.2% in March, much better than the 2% forecast. Initial Jobless Claims were slightly worse than anticipated, up to 222K vs the 21K expected. March Existing Home Sales, however, fell by 5.9%, worse than the -3% anticipated. Finally, the April Kansas Fed Manufacturing Activity index, with posted -5, worse than the 1 from March.

XAU/USD short-term technical outlook

From a technical point of view, the XAU/USD pair is up on the day, although it remains contained within Wednesday’s range. Technical indicators have changed course and aim north within positive levels, gaining fresh impetus and supporting additional gains. At the same time, the pair keeps developing far above all its moving averages, with a bullish 20 Simple Moving Average (SMA) currently at around $3,182, advancing well above also bullish 100 and 200 SMAs.

The 4-hour chart shows that the XAU/USD pair is comfortably consolidating, with technical readings suggesting a bearish twist. The bright metal keeps developing below a mildly bearish 20 SMA, providing dynamic resistance at around $3,370, although the longer moving averages maintain their bullish slopes well below the current level. Finally, technical indicators remain directionless within negative levels. A break through the aforementioned 20 SMA at around $3,370 should open the door for a more sustainable rally.

Support levels: 3,314.50 3,301.40 3,288.70

Resistance levels: 3,344.60 3,358.10 3,370.00