FX.co ★ XAU/USD Price Analysis and Forecast: The Technical Outlook Continues to Favor the Bears

Gold (XAU/USD) continues to trade within a multi-week sideways range and remains vulnerable after failing to consolidate above the psychologically significant $4,100 level.

From a technical perspective, the price action observed over the past month can be classified as a bearish consolidation phase, particularly following the break below the 200-day Simple Moving Average (SMA). However, momentum indicators continue to send mixed signals, warranting caution. The Relative Strength Index (RSI) remains slightly below the 50 mark, indicating only a modest recovery attempt within the broader downtrend. Meanwhile, the MACD histogram remains close to the neutral level.

The nearest major resistance is located at the upper boundary of the trading range around $4,175. A breakout above this level, followed by consolidation above $4,200, could pave the way for a test of the 200-day SMA at $4,500. Bulls need to overcome this barrier to neutralize the prevailing bearish bias and initiate a sustained recovery. The nearest support is located in the $3,960–$4,000 level, where strong buying interest previously emerged.

Nevertheless, the precious metal remains under selling pressure.