Gold Price Forecast: XAU/USD could make a downward correction in the short term

EUR/USD is now facing increasing selling pressure, abandoning the area of recent daily highs and refocusing on the 1.1600 region amid decent losses for the day. The pair’s correction comes in response to the acceptable bounce in the US Dollar, while traders gear up for upcoming key data releases in the US.

GBP/USD remains on the back foot on Friday, retreating to the 1.3140 region on the back of the marked upside impulse in the Greenback. In the meantime, worries about the UK’s fiscal discipline and political stability keep the British Pound under scrutiny, weighing on Cable. Adding to the noise, reports suggested PM Starmer and Chancellor Reeves have shelved plans to raise income tax rates.

Gold trade with heavy losses, approaching the key $4,000 mark per troy ounce on the back of the marked bounce in the US Dollar, higher US Treasury yields across the curve and fading expectations for a Fed rate cut in December.

Bitcoin is trading above $97,000 at the time of writing on Friday amid a sticky bearish wave in the broader cryptocurrency market. The sell-off extends to altcoins, with Ethereum and Ripple hovering below $3,200 and $2.30, respectively.

The end of US government shutdown was not enough to drive a lasting recovery in markets' risk appetite, with equity and bond markets weakening towards the end of the week.

VeChain holds above $0.0150 as overhead pressure signals a 15% downside risk. VeChain migrates from Proof of Authority to Delegated Proof of Stake to power the network’s next growth phase.