empty
16.04.2025 11:50 AM
XAU/USD. Analysis and Forecast

This image is no longer relevant

Gold continues to draw investor attention, particularly in times of heightened uncertainty in financial markets.

Trade Uncertainty: Ongoing uncertainty in trade relations between the U.S. and China makes gold an attractive safe-haven asset. Investors seek refuge in gold during periods of instability.

Fed Policy Easing: Expectations of aggressive monetary policy easing by the Federal Reserve are supporting gold prices at elevated levels. Forecasts of a 100-basis-point rate cut in 2025 create favorable conditions for the precious metal's upward momentum.

Weak U.S. Dollar: The weakening U.S. dollar—currently trading at levels last seen in April 2022—also contributes to higher gold prices. The yellow metal typically appreciates when the dollar weakens.

Technical Outlook: From a technical perspective, the Relative Strength Index (RSI) on daily and 4-hour charts shows slightly overbought conditions, signaling the need for caution among bullish traders. It also suggests that a short-term correction may be necessary. Therefore, traders may want to wait for a period of consolidation or a moderate pullback before entering new long positions.

In the event of a correction, support may be found in the $3246–3245 level, as well as near the $3230–3229 zone at the Asian session low. A deeper decline could be viewed as a buying opportunity, likely limited by the psychological level of $3200.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Gold Returns to Growth

Gold has resumed its upward movement as investors analyzed trade-related comments from U.S. Treasury Secretary Scott Bessent while awaiting the Federal Reserve's decision on interest rates. Bessent recently stated that

Jakub Novak 09:14 2025-05-07 UTC+2

What to Pay Attention to on May 7? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Wednesday, and in any case, they are unlikely to have any meaningful impact on either of the currency pairs. The euro remains

Paolo Greco 06:55 2025-05-07 UTC+2

GBP/USD Overview – May 7: Trump Didn't Get a Call from China, Had to Back Down

On Tuesday, while the euro remained stuck in a flat trend, the GBP/USD currency pair began a new upward move. The rally started on Monday, but during the U.S. session

Paolo Greco 03:35 2025-05-07 UTC+2

EUR/USD Overview – May 7: The Fed Meeting Becomes the Dollar's New "Headache"

The EUR/USD currency pair continued to trade strictly sideways on Tuesday. The broader flat market has now lasted for nearly a month, and in addition to that, the market seems

Paolo Greco 03:35 2025-05-07 UTC+2

Trade War as Part of Global Confrontation

Many may believe that the trade war initiated by Donald Trump is simply a tool to reduce the budget deficit and national debt. However, it becomes clear upon closer examination

Chin Zhao 01:06 2025-05-07 UTC+2

May FOMC Meeting: A Preview

We'll learn the results of the Federal Reserve's latest policy meeting on Wednesday. On one hand, it's a routine event with a predetermined outcome. On the other hand, the currency

Irina Manzenko 00:32 2025-05-07 UTC+2

The Euro Holds Its Ground

Trade wars matter more than politics. Friedrich Merz's proposal to revise Germany's fiscal brake rule laid the foundation for EUR/USD's upward trend. Theoretically, his failure to become chancellor should have

Marek Petkovich 00:32 2025-05-07 UTC+2

Australian Dollar Hits New Highs

The Australian dollar updated its five-month high against the USD at the start of the new week. NAB (National Australia Bank) revised several of its forecasts concerning the Australian economy

Kuvat Raharjo 00:32 2025-05-07 UTC+2

The Euro Ends Its Consolidation and Prepares to Rise Again

Inflation in the eurozone remained at 2.2% year-on-year in April, slightly above the expected decline to 2.1%. Meanwhile, core inflation rose from 2.4% to 2.7%, significantly exceeding the forecast

Kuvat Raharjo 19:08 2025-05-06 UTC+2

USD/JPY. Analysis and Forecast

The Japanese yen is attracting buyers following a recent decline, owing to its status as a safe-haven asset in times of uncertainty. The anticipated recovery of the yen is supported

Irina Yanina 18:47 2025-05-06 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.