Gold Price News and Forecast: XAU/USD has converged into a wedge-shaped pattern as it consolidates

FXStreet Team FXStreet

Gold Price Analysis: Gold moves higher as US-China relations take a sour turn

There is quite a large consolidation pattern on the 4-hour gold chart below. The price has moved into a wedge-like formation and it will be interesting to see if the bulls can take out the pattern to the upside. The price waves are making lower highs and higher lows which shows a lack of commitment in either direction in the short term.

The magnetic level seems to the USD 1700 level at the moment. The price keeps bouncing off the psychological zone which is also very close to the 55 exponential moving average. There does not to be too much upside conviction but It seems that this could be a pause for another move later down the line.

Gold: Consolidation within a medium-term uptrend?

The gold futures contract gained 0.4% on Friday, as it retraced some of the recent declines. The price bounced off $1,675 level (the daily low at $1,676). Gold continues to trade within a downward correction following its April’s advance. On April 14 it was the highest since November of 2012 and the daily high was at $1,788.80. Since then we’ve seen some profit-taking action and a potential downward reversal.

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold rebounds ahead of US ADP, will it last?

Gold finds renewed Asian bids and retests $5,230 early Wednesday after the heavy sell-off on Tuesday. The US Dollar stands tall amid escalating Middle East tensions and reduced dovish Fed expectations. Gold defends $5,000 or 50% Fibo level after facing rejection at the 78.6% Fibo resistance at $5,342 amid bullish RSI.