The Gold price (XAU/USD) shows a bearish trend for the fourth consecutive day on Monday, though it lacks sustained selling pressure, remaining within the familiar range it has held for over a week amid mixed fundamental factors. The strong US employment report from Friday has reduced market expectations for aggressive policy easing by the Federal Reserve (Fed), which has supported the US Dollar near its seven-week high and exerted some pressure on non-yielding assets like Gold.
Additionally, a generally positive mood in global equity markets has also weighed on Gold’s safe-haven appeal. However, substantial declines in Gold remain limited due to ongoing geopolitical tensions in the Middle East, which continue to support its price. Market participants might also be holding back on major moves ahead of key economic releases this week, including the FOMC meeting minutes on Wednesday and US inflation data on Thursday.
From a technical standpoint, the current sideways movement in Gold could be seen as a bullish consolidation phase, building on the recent uptrend toward its record highs. Daily chart indicators are comfortably in positive territory, having recently eased from overbought levels, suggesting the price remains inclined towards an upward breakout. Still, a sustained move above the $2,670-$2,672 resistance level may be necessary before new bullish positions can be considered. Should this occur, additional resistance lies near the $2,685-2,686 range, close to all-time highs, with the $2,700 mark potentially confirming a continuation of the broader uptrend.
On the downside, the lower boundary of the current trading range around the $2,630 level is likely to offer immediate support and could serve as a key pivot for short-term traders. A decisive break below this level could trigger some technical selling, pushing XAU/USD below $2,600 and potentially targeting the next support at around $2,560. A further drop could find additional support near the $2,535-2,530 range, with the $2,500 level representing a significant psychological benchmark.
With XAU/USD currently experiencing fluctuations amid key market dynamics and technical levels, now is a prime opportunity for traders to strategize around potential breakouts or pullbacks. Whether you’re eyeing an upward push towards record highs or watching for support near the $2,630 mark, don’t miss your chance to capitalize on these market movements.
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