XAU/USD outlook: Gold price falls further as US-China trade deal fuels risk appetite

Slobodan Drvenica Windsor Brokers

XAU/USD

Gold price fell through key supports on Wednesday, deflated by growing optimism on US-China trade deal that cooled fears about deeper economic crisis and offset other factors that boost safe haven demand.

Fresh wave of risk appetite pushed gold through pivots at $3228 (50% retracement of $2956/$3500 upleg) which recently contained several attacks and $3200 (psychological/low of pullback from new record high).

Sustained break of $3200 to complete bearish failure swing pattern and generate signal of potential deeper pullback from $3500 peak.

Daily studies are weakening as 14-d momentum is heading deeper into negative territory and the price fell below 10/20/30 DMA’s which also formed bear-crosses.

However, oversold stochastic warns of possible increased headwinds that may result in hesitation at $3200 zone and keep near term price action in extended consolidation.

The price should stay under broken Fibo 50% ($3228) and extended upticks not to exceed daily highs of Tuesday / today ($3265/57 respectively) to keep bears intact.

Res: 3200; 3228; 3265; 3292.
Sup: 3164; 3126; 3100; 3084.

Interested in XAU/USD technicals? Check out the key levels

1. R3 3321.65
2. R2 3293.65
3. R1 3271.93
PP 3243.93
1. S1 3222.22
2. S2 3194.22
3. S3 3172.5

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD eases modestly following the release of US data

EUR/USD is showing little reaction to the latest US releases. The pair is still stuck to familiar levels around 1.1650 following the release of upbeat US Retail Sales, up 0.6% in November. Inflation at wholesale levels in the country rose in November, according to the latest Producer Price Index release.

GBP/USD eases from tops, back to 1.3440

GBP/USD trades on a positive note on Wednesday, receding from earlier highs around 1.3460, now hovering in the 1.3440 region. US data failed to make an impression with the Greenback barely advancing following upbeat Retail Sales figures, hotter Producer Price Index.

Gold defies gravity near fresh record highs

Gold prices rapidly left behind Tuesday’s pullback and reached record highs near $4,640 on Wednesday, trading nearby in the American session. The yellow metal’s uptrend remains propped up by Fed rate cut bets, lower US Treasury yields across the curve, and absent speculative interest around the buck.

Crypto Today: Bitcoin, Ethereum, XRP hold steady as ETF inflows strengthen short-term bullish outlook

Bitcoin stays above $95,000, supported by growing institutional demand, with ETF inflows reaching $753 million on Tuesday. Ethereum is poised to extend its rebound above the 100-day EMA, supported by improving sentiment.

US economic outlook: January 2026

Jerome Powell's eight-year tenure as Chair of the Federal Reserve is coming to a close during a period of intense pressure on the US central bank and divided views among policymakers about the appropriate stance of monetary policy.

Meme Coins Price Prediction: DOGE, SHIB, and PEPE rally, catching Bitcoin's second wind

Meme coins such as Dogecoin, Shiba Inu, and Pepe recorded gains of 7% to 14% on Tuesday, signaling a potential reversal to the upside. DOGE and SHIB hold steady after the bounce back while the frog-themed PEPE extends gains, signaling further upside potential.