Gold Price Outlook: XAU/USD

The price of gold bounces back ahead of the 50-Day SMA ($2953) to register a fresh weekly high ($3099), and bullion may continue to track the positive slope in the moving average as it still holds above the indicator.

Gold Price Bounces Back Ahead of 50-Day SMA

The price of gold may further retrace the decline from the monthly high ($3168) as it snaps the series of lower highs and lows carried over from last week, and the ongoing shift in US trade policy may keep the precious metal afloat as it clouds the outlook for global growth.

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With that said, the price of gold may continue to reflect the bullish trend from earlier this year as it offers an alternative to fiat-currencies, but the precious metal may no longer track the positive slope in the 50-Day SMA ($2953) if it struggles to defend the rebound from the monthly low ($2957).

XAU/USD Price Chart – Daily

Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView

• The price of gold appears to be defending the $2940 (78.6% Fibonacci extension) to $2960 (23.6% Fibonacci extension) zone as it rallies to a fresh weekly high ($3099), with a close above the $3050 (100% Fibonacci extension) to $3070 (50% Fibonacci extension) region bringing $3120 (61.8% Fibonacci extension) on the radar.
• Next area of interest comes in around $3160 (161.8% Fibonacci extension) to $3190 (78.6% Fibonacci extension), but failure to defend the $2940 (78.6% Fibonacci extension) to $2960 (23.6% Fibonacci extension) zone may push the price of gold back towards the March low ($2858).
• A break/close below $2850 (61.8% Fibonacci extension) opens up $2790 (50% Fibonacci extension), with the next area of interest coming in around the February low ($2772).

Additional Market Outlooks

USD/JPY Eyes October Low as China Responds to Trump Tariffs

Canadian Dollar Forecast: USD/CAD Rebound Fizzles amid Trump Tariff Negotiations

AUD/USD Selloff Persists as US Threatens Additional 50% Tariff for China

Euro Forecast: EUR/USD Completes Cup-and-Handle Formation

— Written by David Song, Senior Strategist

Follow on X at @DavidJSong