empty
20.03.2025 11:29 AM
XAU/USD. Analysis and Forecast

Gold is experiencing a slight decline after reaching a new all-time high, remaining in a defensive stance.

Currently, bullish traders are exercising caution, as indicated by overbought conditions on the daily chart and the prevailing positive sentiment in the broader market, which generally reduces demand for safe-haven assets like gold.

The modest strength of the U.S. dollar is also limiting further gains in the precious metal. However, the downside remains contained due to uncertainty surrounding President Trump's aggressive trade policies and their potential impact on the global economy. Additionally, geopolitical risks, particularly in the Middle East, continue to support demand for gold as a safe-haven asset. Growing expectations that the Fed might begin a rate-cut cycle earlier than anticipated are also reinforcing bullish sentiment for gold.

Technical Outlook:

From a technical perspective, the Relative Strength Index (RSI) above 70 signals overbought conditions, discouraging traders from initiating new long positions under current circumstances. A prudent approach would be to wait for a short-term consolidation or a modest pullback before considering fresh buy positions. However, a break above the psychological level of $3,000 suggests that the uptrend remains intact, making further upside the path of least resistance.

In case of a significant correction, buyers are likely to step in around the $3,023–$3,022 area, helping to keep prices above the key $3,000 support level, which is now crucial for short-term traders. A decisive break below this level could trigger technical selling, pulling the price towards intermediate support at $2,980–$2,978 and then towards the $2,956 area.

Further downside could extend the decline toward the $2,930 support level, and if bearish momentum persists, gold may retest the psychological $2,900 mark and last week's lows near $2,880.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

What to Pay Attention to on April 29? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Tuesday, and none are significant. If we set aside all the tertiary reports, such as the GfK Consumer Confidence Index in Germany

Paolo Greco 07:00 2025-04-29 UTC+2

GBP/USD Overview – April 29: Are Labor Market and Unemployment Data Important?

On Monday, the GBP/USD currency pair also traded with low volatility and mainly moved sideways, although the British pound maintained a slight upward bias. Despite the lack of market-relevant news

Paolo Greco 04:33 2025-04-29 UTC+2

EUR/USD Overview – April 29: The Weak Yield, the Strong Resist

On Monday, the EUR/USD currency pair remained immobilized. There were no updates over the weekend from Donald Trump regarding trade developments, and no important data or events were scheduled

Paolo Greco 04:33 2025-04-29 UTC+2

The Euro Looks for a Basis for Another Upward Surge

Business activity indices in the eurozone are declining amid heightened uncertainty. The composite index in April fell from 50.9 to 50.1, nearing contraction territory. At the same time, Germany's

Kuvat Raharjo 00:54 2025-04-29 UTC+2

The Dollar Continues to Sell Off, Outlook Remains Weak

As shown by the latest CFTC report, U.S. dollar futures indicate a further deterioration in its outlook. During the reporting week, the net short position on the USD increased

Kuvat Raharjo 00:54 2025-04-29 UTC+2

Bitcoin Can't Lose

There's never a dull moment with Bitcoin. Sometimes it behaves like a risky asset, sometimes like a safe haven. At the beginning of April, the cryptocurrency was jokingly referred

Marek Petkovich 19:03 2025-04-28 UTC+2

The Market Has Outplayed the Professionals

"Follow the smart money" — this classic principle of technical analysis suggests it's safer to side with professionals rather than the crowd. However, in 2025, such an approach would have

Marek Petkovich 19:00 2025-04-28 UTC+2

USD fails to be resilient

Is the US dollar overvalued? Bank of America thinks so. The bank points out that in previous cycles, when the USD Index peaked in the mid-1980s and early 2000s

Marek Petkovich 16:23 2025-04-28 UTC+2

ECB Ready to Cut Rates Further

Officials at the European Central Bank are preparing for further interest rate cuts, anticipating that U.S. tariff policies will inflict serious and prolonged damage on the economy, even

Jakub Novak 09:24 2025-04-28 UTC+2

The Upcoming Week May Be Positive for Markets but Negative for the Dollar and Gold (we expect further growth in CFD contracts for S&P 500 futures and Bitcoin)

The upcoming week will be rich in important economic data releases, which could have a noticeable impact on market dynamics — but will they be able to? Amid the geopolitical

Pati Gani 09:12 2025-04-28 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.