Gold Price Analysis: XAU/USD bulls to defy overbought conditions on a break above $1,880

FXStreet Insights Team FXStreet

Gold (XAU/USD) strengthened its bullish streak and hit fresh three-month highs just shy of the $1870 mark on Monday, as the sell-off in the US dollar alongside the Treasury yields continue to bolster gold’s appeal. Looking ahead, the yellow metal will continue to take cues from the US dollar price action amid a lack of significant US economic data release. What’s more, overbought conditions on gold’s 4H chart warrant caution for the bulls, FXStreet’s Dhwani Mehta briefs.

XAU/USD risks a pullback amid overbought conditions

“The Fedspeak will be closely followed ahead of Wednesday’s FOMC minutes. The FOMC minutes this week hold the key for gold’s next moves.”

“The Relative Strength Index (RSI) has moved into the overbought territory, suggesting that the gold price could see a pullback before it resumes the uptrend. Therefore, an immediate cap is seen at the $1850 psychological level. The pattern resistance now support at $1844 could be tested if the pullback picks up pace. The bullish 21-simple moving average (SMA) also coincides at the level.”

“The gold bulls need to crack the $1880 target on a sustained basis, in order to extend their journey towards the $1900 threshold.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD stays defensive near 1.3300 amid pre-Fed market caution

GBP/USD stays defensive near 1.3300 in the European session on Tuesday. The pair struggles as the US Dollar (USD) sits at monthly highs amid market caution ahead of the two-day US Federal Reserve monetary policy meeting, starting later this Tuesday.

EUR/USD hangs close to monthly lows near 1.1350 on USD strength

EUR/USD is consolidating near the monthly trough, trading near mid-1.1300s in the European morning on Tuesday, undermined by persistent US Dollar demand. Traders seem hesitant and await the outcome of a two-day FOMC policy meeting before placing aggressive directional bets.

Gold sticks to intraday losses below $4,050 as focus remains on FOMC meeting

Gold maintains its offered tone through the Asian session on Tuesday and currently trades just below $4,050, down 0.85% for the day. This follows the previous day's failure to find acceptance above the $4,100 mark and suggests that the path of least resistance for the bullion remains to the downside.

XRP and XLM extend correction as bearish pressure builds

Ripple and Stellar remain under pressure on Tuesday after losing over 4% and over 5%, respectively, the previous day. In addition, weakening momentum indicators and deteriorating derivatives metrics suggest sellers remain in control, raising the risk of further downside for both altcoins. Derivatives data shows a slight bearish tilt.

Asian stocks including KOSPI slide as AI doubts hit chipmakers

Asian stocks fall sharply on Tuesday as mounting skepticism over the massive financial returns on artificial intelligence spending triggered a widespread sell-off across global semiconductor shares. The tech-driven downturn rippled from Wall Street into Asian markets, while investors shifted toward safety, driving bond prices higher and sending oil lower.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.