FX.co ★ XAU/USD, GOLD

After surging above $5,500 earlier this year, spot gold (XAUUSD) has been declining ever since. The bounce off $4,366.23 last week created a potentially bullish closing price reversal bottom on the weekly chart, and the pullback has carved out support between $4,360 and $4,500. On the surface, the pullback appears completed. The outcome of Friday's non-farm payrolls data and how the U.S. dollar index and 10-year U.S. Treasury yields respond to it will determine whether or not it is. Size appears each time Spot Gold (XAUUSD) retreats toward $4,360 to $4,500. The accumulation of central banks has continued. All year long, their purchases have been far higher than pre-2022 levels, and the correction has not slowed them down. Despite weeks of selling pressure from the rate side, reserves are shifting from traditional fiat holdings to gold, and this trend has not stopped. A variety of retracement levels, such as the long-term 61.8% level at $4541.88, the short-term 50% level at $4495.33, and the short-term 61.8% level at $4401.82, are currently engulfing the market on the downside. Additionally, traders have been defending $4481.78, which is 20% below the all-time high of $5602.23. This level, by definition, distinguishes between the bull and bear markets. The 52-week moving average, at $4199.66, is below each support level. This is the trend indicator and long-term support. The market effectively tested the 200-day moving average last week, resulting in a daily reversal. If the 52-week MA is tested, I anticipate a similar response. The long-term 50% mark at $4744.34 is crucial for maintaining any rally on the upside. But we anticipated some noise between $4850.68 and $5028.04. The swing top, which costs $4891.54, is likewise located inside this region. All things considered, passing this region is probably going to lead to a powerful rally.