FX.co ★ XAU/USD, GOLD

Gold Short-Term Outlook: Today's discussion will focus on a detailed analysis of the gold price movements. This week, I predicted that the gold prices would rise to the upper limit of the descending channel, specifically the 4539.81 level. Theoretically, this rise occurred as expected, with the price rebounding at this level and beginning a downward movement. Initially, the price appeared to be heading downwards, but it was unable to sustain this decline and reversed, beginning an upward movement. On Monday, the price reversed and began to fall again, likely reaching 4539.81, the target of the fifth wave of the down trend. Conversely, if gold prices continue to rise, the price could reach the previously broken ascending trendline, specifically the 4539.81 level.

If this level becomes a strong target, gold may reverse direction, and the price may begin to fall. (H4 chart). Gold showed resistance to a decline in last week's trading, despite all the conditions for a decline being in place. This may be due in part to the gradual weakening of the US dollar across the market, particularly on Friday. However, the technical analysis outlook remains bearish as the wave structure indicates a downtrend. As long as the price remains below the horizontal resistance level of 4539.81, this level is a key turning point, and we should watch for further declines. The Commodity Channel Index (CCI) has also entered overbought territory, indicating a potential downtrend. The price is likely to fall and head towards the next two support levels, 4539.81.