Gold Moves Lower

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Gold Moves Lower

Gold Moves Lower

Gold (XAU/USD) managed to cross the $2800 and also made a recent high in the process. However, the yellow metal failed to keep up the momentum and has since slipped below the $2800 handle.

The technical indicators show that the Gold market is now overstretched. This is a sign that a possible correction is up ahead for the Gold (XAU/USD) market.

Gold (Xau/Usd) To Go Through Correction

The RSI is also under 70 on the Gold (XAU/USD) D1 chart and appears to be testing a monthly uptrend line. Meanwhile, the MACD indicator shows that the bullish momentum is slowly fading away. Also, the MACD hints at an upcoming correction in the Gold (XAU/USD) market.

It seems that the next stop for the Gold (XAU/USD) will be around $2500. This will happen if the selling intensifies and the US Dollar gets stronger under the Trump era.

Any moves by Trump that will strengthen the US Dollar will also translate to lower prices of the Gold (XAU/USD). On the way down, the $2675 level is also important as that's where the 50 SMA is seen.

On the way up, the next target for the Gold bulls will be $3000, without any doubt. But can it happen? At this stage, it is difficult to say anything as we still have no clarity on the next move by Donald Trump.

Beyond the $3K level, the next key target for the Gold (XAU/USD) bulls will be $3200, $3400, and $3500. However, it seems highly unlikely at this stage.

In fact, the prospects of Gold (XAU/USD) rising higher in 2025 are not that high. On the flip side, the path of least resistance for the Gold (XAU/USD) is downside, towards the $2500 and $2200.

However, an escalation of the trade wars and an increase in geopolitical tensions could lend some support to the Gold (XAU/USD) market. In that case, Gold (XAU/USD) will easily cross the $3000 handle and then move towards its next resistance zones.

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