Gold Price Forecast: XAU/USD wavers around $4,100 with the bearish trend intact
Gold (XAU/USD) nurses minor losses with price action contained within Thursday’s trading range, around the $4,100 level, set for 1.6% weekly depreciation. Precious metals struggled this week as the resumption of hostilities in Iran boosted Oil prices, pressuring central banks to hike interest.
Markets are looking for direction on Friday amid a tense calm, and rumours that mediators are working to bring Washington and Tehran back to the negotiating table. Axios cited a US official affirming on Friday that the US is still committed to finding a resolution and that technical talks to reach a nuclear deal continue.
The US Dollar Index, which measures the value of the Greenback against a basket of six peers, has bounced from levels near three-week highs amid a cautious market mood, and is drawing closer to the 101.00 level, which keeps Gold upside attempts limited.
Technical Analysis: Hints of a reversal within the broader bearish trend
XAU/USD trades at $4,110, holding just below the trendline resistance from early March lows, although the higher low seen earlier this week suggests that bears might be losing momentum. Indicators in the daily chart are also showing a weakening bearish momentum, yet with no clear sign of a trend shift on the horizon so far.
The Relative Strength Index (14) has picked up towards neutral territory, while the Moving Average Convergence Divergence (MACD) has turned positive with its latest reading at 19.09, hinting at improving momentum.
Price action, however, needs to overcome structural resistance first at the mentioned trendline, now around $4,175, and then at the July 6 just above $4,200 and June 17 highs in the area of $4,380. On the downside, the precious metal has a cluster of supports between Thursday's low in the $4,020 area and the late October 2025 lows near $3,885.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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