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Gold (XAU/USD) Price Forecast: Stalls at $3,897 as Buyers Test Key Levels
FX Empireยท 2025-10-02 20:33
Group 1: Market Dynamics - A pullback to the 10-Day moving average at $3,784 is considered a normal retracement under current volatility conditions, with this level marking dynamic support during the latest rally [1] - The ongoing rally, which began after the August swing low, is characterized by strong bullish momentum, with brief pullbacks being shallow and no more than two consecutive sessions of lower highs and lows [2] - A decisive breakout above the new all-time high of $3,897 would pave the way for further movement toward the next resistance zone projected between $3,969 and $4,000 [3] Group 2: Technical Indicators - The 10-Day moving average is the first key level to monitor, with a break below it indicating a shift in near-term momentum and opening the way to the next support level at the 20-Day average, currently at $3,714 [1] - The monthly relative strength index (RSI) for gold is at its most overbought level since January 1980, suggesting that while buyers are in control, the market may be stretched [4] - The ABCD projection indicates that the market is closely attuned to the resistance level at $3,897, which aligns with a significant technical pattern originating from the 2018 lows [3]