Gold Price Falls Toward 50-Day SMA
The price of gold falls toward 50-Day SMA ($3081) as it snaps the range bound price action from earlier this week.
Share this:
Gold Price Outlook: XAU/USD
The price of gold falls toward 50-Day SMA ($3081) as it snaps the range bound price action from earlier this week.
Gold Price Falls Toward 50-Day SMA
The price of gold carves a series of lower highs and lows as it slips to a fresh weekly low ($3202), and the precious metal may no longer reflect the bullish trend from earlier this year should it trade below the moving average for the first time since January.
Join David Song for the Weekly Fundamental Market Outlook webinar.
David provides a market overview and takes questions in real-time. Register Here
With that said, the advance from the April low ($2957) may continue to unravel should the bearish price series persist, but the recent weakness in the price of gold may turn out to be temporary as it remains an alternative to fiat-currencies.
XAU/USD Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView
- The price of gold gives back the advance from the start of the week to carve a series of lower highs and lows, with a break/close below the $3160 (161.8% Fibonacci extension) to $3190 (78.6% Fibonacci extension) region bringing $3120 (61.8% Fibonacci extension) on the radar.
- Next area of interest comes in around $3050 (100% Fibonacci extension) to $3070 (50% Fibonacci extension), but the price of gold may continue to track the positive slope in the 50-Day SMA ($3081) should it hold above the moving average.
- Need a move back above $3280 (100% Fibonacci extension) for bullion to threaten the bearish price series, with a move/close above $3370 (161.8% Fibonacci extension) raising the scope for a test of the April high ($3500).
Additional Market Outlooks
Canadian Dollar Forecast: USD/CAD Vulnerable to Fresh Yearly Lows
US Non-Farm Payrolls (NFP) Report Preview (APR 2025)
USD/JPY Defends Rebound from Monthly Low Ahead of BoJ Rate Decision
British Pound Forecast: GBP/USD on Cusp of Testing 2024 High
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold Analysis: XAU/USD Holds Above Key Support Ahead of the Fed Decision
Over the last few trading sessions, gold has managed to stage a modest recovery. The precious metal has gained more than 1.7% across the last two sessions, a move that has introduced some buying momentum after several weeks of sustained pressure on prices. For now, this rebound appears to be driven largely by the cautious atmosphere dominating markets ahead of the Federal Reserve's monetary policy decision.
Silver Forecast: Is XAG/USD Finally Finding a Bottom
Silver is showing some encouraging signs after an initially weak start to the session. The metal dropped to a new year-to-date low below the $53 handle, reaching $52.60 before staging a sharp recovery.
Gold forecast: Can XAU/USD hold $4000 support?
Gold has started the week trying to stabilise around the $4,000 level after last week’s 4% drop that saw the metal briefly drop and close below this psychological hurdle.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.