Over the past 24 to 48 hours, gold (XAUUSD) has maintained its strong momentum, breaking above the $4,500 mark, with the previous closing price around $4,498.68, reflecting a clear uptrend. The recent price volatility is primarily driven by a weaker US dollar, escalating geopolitical tensions, and market anticipation of Federal Reserve rate cuts. Despite short-term pullback risks, gold remains fundamentally bullish in the long run.

According to the latest market news, while analysis flags a short-term pullback risk toward $4,344.97, the dollar’s weakness, geopolitical uncertainties, and possible Fed rate cuts continue to support gold prices. Additionally, ongoing central bank purchases and increased investor demand for safe-haven assets amid economic uncertainties have helped gold set new highs.

For the average investor, the recent rise in gold prices mirrors growing concerns about global economic and political risks. Even facing potential short-term corrections, gold is viewed as a financial safe haven. This situation is akin to investors seeking shelter before a storm, with expectations that gold prices will continue to fluctuate at elevated levels or move higher in the coming weeks.

Daily Chart

The daily chart reveals that XAUUSD has maintained an upward trajectory since mid-December, breaking through multiple key resistance levels and consolidating above 4,480. The price exhibits a steady uptrend, with repeated tests and breaks above the Bollinger Bands’ middle and upper bands, reflecting strong buyer dominance. The MACD is above zero with a bullish alignment, and moving averages confirm the long-term uptrend. Overall, the daily chart supports continued bullish momentum but warns of possible short-term overbought conditions.

1H Chart

Looking at the last 3-5 days on the hourly chart, the gold price shows signs of short-term consolidation and reduced volatility with a tightening Bollinger Bands range. The MACD indicates weakening momentum, signaling a potential short-term correction. A noticeable wedge pattern has formed, suggesting traders should wait for a confirmed breakout direction. The emergence of a bearish engulfing candlestick pattern hints at a possible pullback within the next 24 hours, making support at 4,480 critical to watch.

Technical Trend:  Steadily bullish with cautious signs of short-term consolidation

Technically, the bullish trend remains intact, but price is approaching overbought territory per momentum indicators. MACD and RSI suggest caution as a short-term retracement may occur. The price is near key support levels where a breakdown could increase downside pressure. Traders should monitor for clear breakout or reversal signals to seize high-probability trading opportunities.

Today’s economic calendar shows only the Bank of Japan Governor Ueda speaking, with no significant US or dollar-related economic releases. Therefore, there is no direct or significant event expected to impact XAUUSD pricing today. Attention should remain on broader market news and macroeconomic trends influencing the US Dollar index and geopolitical risk sentiment.

Resistance & Support

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