Gold (XAU/USD) Price Forecast: Key Support Holds Amid Short-Term Weakness

Gold investors face a critical juncture as the precious metal navigates short-term volatility while maintaining key long-term support levels. After testing resistance near the 20-day moving average, gold is demonstrating resilience that suggests underlying strength despite recent price pressures.

The current technical landscape reveals a nuanced situation where potential Federal Reserve policy shifts could significantly impact gold's trajectory. Near-term support at $4,842 remains a critical threshold, with investors closely monitoring whether this level will hold against potential downward pressure.

Technical analysts are particularly focused on the 50-day moving average at $4,673, which has historically provided robust support during recent market corrections. The fact that this level coincides with an interim swing low at $4,655 further reinforces its significance for gold's potential recovery path.

Notably, the recent price action suggests a potential consolidation phase after the sharp 21.4% decline from the $5,598 peak. While market sentiment remains cautious, the gold market demonstrates characteristic resilience that sophisticated investors have come to expect.

Looking forward, gold's ability to maintain support near $4,842 and potentially reclaim the 20-day moving average at $5,003 will be crucial indicators of short-term market sentiment. Investors should remain vigilant, watching for a potential recovery toward the $5,345 resistance level while maintaining a strategic, long-term perspective.