- A wedge pattern on the 4-hour chart hints at a potential reversal to 1,900.
- Gold sends mixed signals ahead of the new week’s trading; a rally to 2,000 is possible.
Gold spiked significantly this week and brushed shoulders with 1,960. The instability witnessed in the stock market saw the precious metal used as a hedging asset. The rally to 1,960 was a continuation of the uptrend started towards the end of October. The days heading to the US election shined a light on the gold, catapulting it to nee monthly levels.
XAU/USD closed the week changing hands at 1,952 after embracing support at 1,950. Gold’s immediate upside is capped by the seller congestion at 1,950. Consequently, the formation of a descending channel adds credulity to the bearish narrative. Therefore, it is likely for the precious metal to crumble in the coming week, especially if the wedge pattern support and the short-term anchor at 1,940 caves in.
On the downside, the initial point of contact could be the 50 Simple Moving Average in the-hour chart. Other tentative support areas include the 100 SMA and the 200 SMA at 1,900.
XAU/USD 4-hour chart
If instability spikes in the stock market following Joe Biden’s win, gold could resume the uptrend abolishing the bearish outlook altogether. Moreover, holding the short-term support at 1,950 would allow bulls to shift the focus back to 2,000. However, the seller congestion 1,960 might absorb the buying pressure, delaying the price movement.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

AUD/USD weakens amid anti-risk flow; bearish USD could limit losses
AUD/USD drifts lower on Friday, although it remains confined within a multi-week-old trading range below the YTD high. Trade-related uncertainties and rising tensions in the Middle East weigh on investors' sentiment and the risk-sensitive Aussie. The downside, however, seems limited amid the USD slump to a multi-year low.

USD/JPY seems vulnerable amid geopolitical risks, BoJ rate hike bets
USD/JPY prolongs its downtrend for the third straight day on Friday. The global risk sentiment takes a hit amid an escalation of geopolitical tensions in the Middle East, which boosts the JPY's safe-haven status. The USD plummets to a two-year low amid rising Fed rate cut bets and contributes to the decline.

Gold price advances to one-month peak amid a global flight to safety
Gold price attracts buyers and climbs to over a one-month peak on Friday as rising geopolitical tensions in the Middle East underpin the safe-haven demand. Trade-related uncertainties, rising Fed rate cut bets, and a USD slump to over a two-year low provide an additional boost to the bullion.

Circle plunges 10% as XRP Ledger integrates USDC, EVM sidechain to launch in Q2
Stablecoin issuer Circle saw a 9.1% decline on Thursday after it revealed that it has integrated USDC on the XRP Ledger, making it available for businesses and users on the remittance-based token's blockchain.

US tariffs here to stay, trade deals ‘largely symbolic’
Despite legal challenges to IEEPA tariffs, US trade policy remains firm. Tariffs on steel and aluminium have doubled, and new sectoral tariffs are expected. Trade deals may emerge, but most will be symbolic. Effective tariff rates will stay high throughout 2025.