Gold Price Continues to Hold Above 50-Day SMA

Gold Price Outlook: XAU/USD

The price of gold may attempt to retrace the decline from the monthly high ($3451) as it snaps the recent series of lower highs and lows to hold above the 50-Day SMA ($3321).

Gold Price Continues to Hold Above 50-Day SMA

Keep in mind, the price of gold pushed above the May high ($3435) after defending the advance from the start of the month, and recent pullback in bullion may turn out to be temporary should it continue to track the positive slope in the moving average.

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With that said, gold may extend the advance from the start of the week as it no longer carves a bearish price series, but the precious metal may threaten the positive slope in the 50-Day SMA ($3321) should it fail to defend the advance from the monthly low ($3289).

XAU/USD Price Chart – Daily

Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView  

• The price of gold snaps the series of lower highs and lows from last week after struggling to close below $3370 (161.8% Fibonacci extension), and a move above the monthly high ($3451) may lead to a test of the April high ($3500).
• Next area of interest comes in around $3540 (161.8% Fibonacci extension), but lack of momentum to hold above $3370 (161.8% Fibonacci extension) may push the price of gold toward the monthly low ($3289).
• A move/close below $3160 (161.8% Fibonacci extension) to $3190 (78.6% Fibonacci extension) zone brings the May low ($3121) on the radar, with the next area of interest coming in around $3050 (100% Fibonacci extension) to $3070 (50% Fibonacci extension).

Additional Market Outlooks

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--- Written by David Song, Senior Strategist

Follow on X at @DavidJSong