Gold Price Outlook Hinges on Response to Positive Slope in 50-Day SMA
The price of gold may reestablish the bullish trend from earlier this year should it track the positive slope in the 50-Day SMA ($2800).
Share this:
Gold Price Outlook: XAU/USD
The price of gold appears to be pulling back ahead of the record high ($2956) as it snaps the series of higher highs and lows from the start of the week.
Gold Price Outlook Hinges on Response to Positive Slope in 50-Day SMA
In turn, the price of gold may consolidate within the February range amid the failed attempt to push above the weekly high ($2930), but bullion may reestablish the bullish trend from earlier this year should it track the positive slope in the 50-Day SMA ($2800).
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 range bound price action in bullion may turn out to be temporary as it continues to offer an alternative to fiat currencies, but the price of gold may continue to give back the advance from the February low ($2772) if it struggles to hold above the moving average.
XAU/USD Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView
- The price of gold hold below the weekly high ($2930) as it snaps the recent series of higher highs and lows, with a break/close below $2850 (61.8% Fibonacci extension) raising the scope for a move towards $2790 (50% Fibonacci extension).
- Next area of interest comes in around the February low ($2772), but the price of gold may track the positive slope in the 50-Day SMA ($2800) if it continues to hold above the moving average.
- Need a move above $2940 (78.6% Fibonacci extension) to bring the February high ($2956) on the radar, with the next region of interest coming in around $3000 (161.8% Fibonacci extension).
Additional Market Outlooks
British Pound Forecast: GBP/USD Holds Above Channel Resistance
EUR/USD Rally Persist Even as ECB Pursues Less Restrictive Policy
AUD/USD Rebounds Even as Trump Tariffs Go into Effect for China
Canadian Dollar Forecast: USD/CAD Rally Persists with Trump Tariffs on Track
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong
Related tags:
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 forecast: XAU/USD struggles as traders eye breakdown
After a three-day recovery, gold prices have fallen in excess of 1.2% so far today, as the metal continues to hover around the $4,000 level. Today’s bearish price action threatens this key level, especially when you consider last week’s 4% sell-off. For now, gold is hanging around this psychological threshold, but it remains to be seen whether it will hold for too long.
Nasdaq 100 forecast: Alphabet results reignite AI concerns
Disappointing results from a couple of major global technology names have put the AI trade back under scrutiny, with Nasdaq 100 futures falling around 1% after giving up the post-FOMC gains seen overnight. For now, our short-term Nasdaq 100 forecast remains more on the cautious side of things than outright bearish. The index remains close to its record highs and continues to find dip buyers. But could that change soon?
DAX forecast: AI optimism offers relief ahead of central bank meetings
The DAX is finding some relief from the recent improvement in risk appetite, with investors becoming less concerned about the sustainability of the AI trade
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.