FX.co ★ XAU/USD, GOLD

Hello traders, GOLD / Gold / XAUUSD. Gold lost weight during the past trading week, with the area around $4850 per troy ounce acting as resistance. This led to a gradual decline with fading local highs and constant new lows. By the end of the week, it lost about $150 in total, moving essentially downwards. It is evident that such sharp movements as before are no longer happening, and trading has become more grounded but also more predictable. It is worth noting that the uptrend is currently on pause, and it is uncertain when or if this pause button will be released, as the dynamics are starting to resemble a downtrend, although the trend is far from broken. What can we observe at the moment? A range has formed between 4360-4850, quite wide, and the price feels quite comfortable within it. Trading a sideways market, in my opinion, is no worse than a trending movement, and in some cases, even better and clearer. Now, since we seem to be heading downwards, at least based on the results of the past week, it is likely that this trend will continue into the next week. It is too early to make far-reaching predictions, as the uptrend is still intact. However, from a technical standpoint, we could potentially drop to around $4500. In the absence of signals for growth, we have to rely on such a scenario.