Gold Price Outlook: XAU/USD
The price of gold trades back above the 50-Day SMA ($2664) as it stages a five-day rally for the first time since March.
Gold Price Stages Five-Day Rally for First Time Since March
The price of gold trades to a fresh weekly high ($2712) as it carves a series of higher highs and lows, and bullion may once again track the positive slope in the moving average as it attempts to retrace the decline following the US election.
Join David Song for the Weekly Fundamental Market Outlook webinar.
With that said, the price of gold may climb back towards the monthly high ($2762) as it extends the advance from the start of the week, but bullion may consolidate over the remainder of the month if it struggles to extend the bullish price series.
XAU/USD Price Chart – Daily
Chart Prepared by David Song, Strategist; XAU/USD on TradingView
- Recent price action in gold raises the scope for a further recovery, with a break/close $2730 (100% Fibonacci extension) bringing the monthly high ($2762) on the radar.
- A breach above the yearly high ($2790) opens up $2850 (61.8% Fibonacci extension) but failure to break/close $2730 (100% Fibonacci extension) may keep the price of gold within the monthly range.
- Lack of momentum to hold above the $2630 (78.6% Fibonacci extension) to $2660 (23.6% Fibonacci extension) region may push the price of gold back towards $2590 (100% Fibonacci extension), with the next area of interest coming in around $2550 (61.8% Fibonacci extension).
Additional Market Outlooks
GBP/USD Selloff Pushes RSI Up Against Oversold Zone
USD/JPY Weakness Curbs Threat of Currency Intervention
US Dollar Forecast: AUD/USD Recovery Keeps Yearly Range Intact
USD/CAD Rally Unravels to Pull RSI Back from Overbought Zone
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong