Gold Daily Forecast During the early hours of trading in the Asian market. The XAU/USD pair is currently moving downwards after hitting a three-month high of 4697. Before selling pressures took over the yellow metal. Bulls managed to send gold prices soaring above 4697, then sellers again became active and drove the price back to trade around 4640. This decline might be attributed to the profit-taking phase. In fact, the RSI has crossed above 70 into the overbought zone. As well as the modest rebound seen in the DXY index, currently hovering around 99, after sliding to a new five-week low of 98.56 last week. However, there may not be much downside risk for gold given prevailing fundamental conditions. TD Securities indicates that the precious metals sector is getting solid backing from movements within the US Treasury market. Last week, Treasury Secretary Scott Bessent stepped in with comments regarding the government's buying of US Treasuries, which increased more than double to $8 billion between September 9 and November 4, as the fight is still on to bring down long-end yields. Analysts suggest this will fuel gold and silver bulls, with concerns about America's fiscal status reviving the story of USD debasement. In addition, there was increased buying pressure on gold-backed exchange-traded funds last week. According to the WGC figures, global gold-backed ETFs registered net inflows worth $3.52 billion, or 23.6 tonnes, during the week under review. So far this year, inflows reached $21.34 billion, or 116.1 tonnes, driven by robust purchases in regions such as Asia and Europe, despite Middle East news headlines. The Iranian Finance Minister, Ali Madanizadeh, noted in a statement published on Monday via a state-controlled media outlet that his country is ready to defend itself in the wake of American sanctions. On Wednesday, the US Treasury rolled out "Operation Economic Outcast." Oil prices are hardly responding to current events in the energy complex. At the time of writing, WTI is trading at a low of 92.65, down about 3.5% in today's trading session. Nonetheless, oil prices have held firmly above pre-war levels. This helps maintain threats of energy-related inflation and causes uncertainty about the Fed's future monetary policy decisions. Moving forward, traders will focus on the release of the US PCE Price Index on Wednesday and the Fed Chairman's address at the Jackson Hole Symposium on Friday. Based on the daily chart, the precious metal pair XAU/USD continues to display bullish sentiment. The price is rising above the 50-, 100-, and 200-day Simple Moving Averages (SMAs). All these indicators cluster around $4,185-$4,520. Indeed, their stacking formation reflects a sustained uptrend, whereas the Relative Strength Index (14), close to 71, denotes overbought territory. On the other hand, the positive reading in the MACD histogram indicates a powerful uptrend in the gold metal market. Resistance starts at the horizontal barrier at $4700; however, buyers should push the rally further. The next resistance barrier would materialize around $4850. The 200-day SMA provides crucial support at $4520; beyond that, the 100-day SMA serves as an additional level of support around $4379, while the 50-day SMA acts as a third support line at $4186. Below the 50-day SMA at $4186, there would be further buying interest around $4000.
