Gold Price Forecast: XAU/SD extends its recovery to the $4,400 area
- Gold appreciated to $4,400 after bottoming at $4,270 earlier this week.
- Precious metals rally amid rising geopolitical frictions and thin trading volumes.
- XAU/USD is likely to find resistance at $4,400 and $4,445.
Gold (XAU/USD) accelerated its recovery on a holiday-thinned session on Friday, with markets in Japan and China closed for the New Year festivities. The precious metal is 1.75% up on the day, reaching levels near $4,400, after bouncing from $4,274 earlier this week.
A combination of market expectations of lower interest rates in the US and growing geopolitical frictions has underpinned support from precious metals over the last few sessions. Russia has announced the revision of its stance at the peace talks with Ukraine, after an alleged drone attack in one of President Vladimir Putin’s residences, while US President Trump has elevated his tone against Iran.
Technical Analysis: Gold, likely to find resistance at $4,400 and $4,445
The 4-hour chart shows XAU/USD trading at $4,395 after bouncing up from the area between the 61.8% and the 78.2% Fibonacci retracement levels of the December rally. This is a common target for corrections, but Monday's bearish engulfing pattern on the daily chart should act as a warning for buyers.
Technical indicators on intra-day charts are positive. The 4-Hour Moving Average Convergence Divergence (MACD) turns higher, reinforcing improving bullish momentum. The Relative Strength Index (RSI) sits at 52.85, neutral and slightly favoring longs
Resistances are at the December 30 high, near $4,400, ahead of the December 23 and 24 lows, at the $4,445 arrea and the broken trendline support, now around $4,500. Supports are at the 4,305 intra-day level and the December 31 low at $4,274. Further down, the target is at the early December lows, near $4,170.
(The technical analysis of this story was written with the help of an AI tool)
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.17% | 0.19% | 0.05% | 0.05% | -0.23% | -0.28% | -0.08% | |
| EUR | -0.17% | -0.02% | -0.04% | -0.02% | -0.36% | -0.34% | -0.15% | |
| GBP | -0.19% | 0.02% | -0.02% | -0.04% | -0.34% | -0.35% | -0.12% | |
| JPY | -0.05% | 0.04% | 0.02% | -0.11% | -0.41% | -0.38% | -0.13% | |
| CAD | -0.05% | 0.02% | 0.04% | 0.11% | -0.32% | -0.28% | -0.12% | |
| AUD | 0.23% | 0.36% | 0.34% | 0.41% | 0.32% | 0.02% | 0.22% | |
| NZD | 0.28% | 0.34% | 0.35% | 0.38% | 0.28% | -0.02% | 0.20% | |
| CHF | 0.08% | 0.15% | 0.12% | 0.13% | 0.12% | -0.22% | -0.20% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
