FX.co ★ HiDe_N_SeEk | XAU/USD, GOLD

Last week, Spot Gold (XAUUSD) closed at $4,540.64, down $175.07, or 3.71%. The selling was not haphazard, and that is the worst weekly performance of the year. The Fed's view was drastically altered by three hot inflation readings in a row. Gold absorbed the liquidation throughout the week as traders who had been positioned for rate cuts began to liquidate down bets. The market is repricing the significance of the rate cut narrative that propelled gold to all-time highs earlier this year. After an effort to break out over a long-term 50% mark at $4,744.35 failed to draw enough fresh buyers to prolong the advance, Spot Gold (XAUUSD) ended the week down. A support cluster consisting of a short-term 50% level at $4,495.33, a long-term 61.8% level at $4,427.82, and a short-term 61.8% level at $4,401.82 was formed when sellers struck it hard. The support zone created by the March 23 major bottom at $4,099.12 and the 52-week moving average at $4,129.82 is the best support this week. Resistance is piled at $4,744.35, $4,850.68, and $5,028.04 on the upside. A transaction through $4,891.54 will cause the momentum to move upward. I'll be observing how traders respond to $4,495.33 to $4,401.82 early this week. My attention will move to $4,129.82 to $4,099.12 if it doesn't work. The long-term trend is being managed by the 52-week moving average at $4,129.82. Another thing to think about. $4,481.78 is 20% less than the record high of $5,602.23. Spot Gold (XAUUSD) enters bear market territory if it closes below it. One of the biggest weekly increases in months was recorded by the U.S. Dollar Index. The demand for the US dollar was driven by rising yields and changing Fed expectations. Every buyer outside of the US pays more for Spot Gold (XAUUSD) when the dollar is stronger, and this demand quickly declines. Gold cannot withstand both forces acting against it at the same time, and it did not attempt to do so last week.

On May 15, 2026, the yellow and white metals saw relatively flat trading as investors tried to evaluate the long-term effects of April's unexpectedly strong US inflation report in conjunction with the stability of the short-term US-Iran ceasefire. Both headline and core inflation were somewhat higher than anticipated in April's CPI data, which might stall the trend in rate-sensitive precious metals and put pressure on short-term rate cut expectations. The largest driver of demand for gold is now the strong official sector purchases. For example, China's central bank has been buying bullion for over 17 months in a row, while other emerging-market central banks have increased their gold purchases in reaction to geopolitical threats. Silver has had a different dynamic than gold, as safe-haven inflows have decreased since the truce. The market for silver, a non-monetary precious metal, is being impacted by a persistent supply shortage, slower US growth, slower energy use, and higher interest rates. With solar panels, electrified cars, electronics, AI-related technologies, and other end-use drivers continuing to support the prognosis for industrial demand, the supply-demand balance should continue to be favorable. Both metals should shift from short-term trading on events to longer-term trade fundamentals as long as the truce is upheld and Middle Eastern energy supplies are still curtailed. Investors should be aware of the impending publication of US economic statistics and anticipated central bank recommendations. After green rejection candles held the lower blue declining channel line close to $4,538, Gold Spot traded at $4,555.40 on the two-hour chart. Following a big red distribution candle from $4,718, the price printed out a bullish hammer candle, holding above the 0.786 Fib line at $4,561 and the previous swing bottom. The dynamic ceiling where lower highs continue to be established is the red 50 MA, which is close to $4,670. $4,538–4,555 is identified as a strong area of confluence support in the one-hour volume profile. The channel's midline will be at $4,670, while the overhead zone will be at $4,597 (0.382 Fib). A stabilizing support level was discovered near the floor of the blue channel in the two-hour period, even if the market is still seen as bearish and is still below $4,670.