Gold (XAU/USD) Price Forecast: Downward Pressure Targets 50-Day Support

Core Viewpoint - A potential rally to test resistance near the 20-day average at $4,072 is possible if the recent low of $3,886 continues to hold as support, indicating a possible advance towards the 20-day line [1] Group 1: Breakdown Analysis - Monday's decline breached both the 20-day line and the top rising channel line, indicating a significant breakdown with both indicators converging on that day [2] - The broken support at the top of the channel suggests that the opposite side of the pattern may become a target, although the rising dashed centerline is likely to be tested first as support [2] Group 2: Support Levels - The initial lower target for gold is the 50-day average at $3,794, which will soon converge with the 50% retracement level at $3,846, creating a potential support zone for the current bearish correction [3] - Traders may use rallies into this resistance area to exit long positions or enter shorts, maintaining downward pressure until a clear support level is established [3] Group 3: Outlook and Key Levels - A decisive close below $3,916 will target the centerline and the $3,794-$3,846 zone, while a close above it will defend the $3,886 low [4] - The 20-day average at $4,072 caps any near-term bounces, with channel dynamics favoring an eventual test of the midline [4] - Holding the 50-day average is crucial for maintaining the longer-term uptrend, while a decisive break could signal a deeper correction [4]