Gold Price News and Forecast: XAU/USD prices consolidate gains to sub-$1,650 area amid risk reset

FXStreet Team FXStreet

Gold Price Analysis: Resistance-turned-support trendline keeps $1,700 on the cards

Gold recovers most of the early-day losses while trading around $1,658, -0.10%, while heading into the European session on Tuesday. Even so, it needs to cross Monday’s high for the fresh rise. If the yellow metal manages to ignore overbought RSI conditions beyond $1,690, the high of 2013 near $1696 as well as $1,700 will be on the bulls’ radar.

It should, however, be noted that the commodity’s rise past-$1,700 can take aim at highs marked during November and October 2012, respectively near $1,751 and $1,794.

Gold prices consolidate gains to sub-$1,650 area amid risk reset

Gold prices decline to $1,649.50, down 0.62%, amid the initial hours of the Asian session on Tuesday. While the risk of spreading coronavirus outside China propelled the bullion to a fresh seven-year high on Monday, the recently mixed headlines seem to trigger the pullback amid risk reset.

Among the key catalysts, China’s lowering of emergency alerts in various provinces and the recent recovery in coronavirus (COVID-19) numbers played the key role. Also challenging the risk-on was the World Health Organization’s (WHO) tweet mentioning the epidemic to have peaked between late-January and early-February. Further to support the sellers were the US President Donald Trump and the Federal Reserve Cleveland President Loretta Mester who downsized the risks emanating from the Chinese virus.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD retreats toward 1.1700 on modest USD recovery

EUR/USD stays under mild bearish pressure and trades below 1.1750 on Friday. Although trading conditions remain thin following the New Year holiday and ahead of the weekend, the modest recovery seen in the US Dollar causes the pair to edge lower. The economic calendar will not feature any high-impact data releases.

GBP/USD struggles to gain traction, stabilizes near 1.3450

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades marginally lower on the day at around 1.3450 as market participants remain in holiday mood.

Gold climbs toward $4,400 following deep correction

Gold advances toward $4,400 and gains more than 1.5% on the day after suffering heavy losses amid profit-taking heading into the end of the year. Growing expectations for a dovish Fed policy and persistent geopolitical risks seem to be helping XAU/USD stretch higher.

Cardano gains early New Year momentum, bulls target falling wedge breakout

Cardano kicks off the New Year on a positive note and is extending gains, trading above $0.36 at the time of writing on Friday. Improving on-chain and derivatives data point to growing bullish interest, while the technical outlook keeps an upside breakout in focus.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).