Gold has seen impressive gains through all of this year rising over 30% since January 1, 2025. Despite the initial jitters following the Liberation Day tariff announcements, the price of Gold has continued rising, hitting a peak of $3499.97.
Here is a technical analysis of how Gold is expected to behave over the next 3-4 week period.
An analysis of the weekly and monthly Stochastic Oscillator charts for XAUUSD shows the commodity to be overbought.
However, the Relative Strength Index for Gold is in the high 70s or 80s, indicating a strong bullish momentum.
Whenever this happens, there is an equal push on both sides, and while we expect the price to slightly drop over the next 1-2 weeks, this is not going to be significant enough to warrant concern.
At a price action level, Gold is witnessing support at the $3200 mark. We expect the price to drop to hit this support level before gaining ground and moving up to breach the $3500 mark.
However, any move past the current resistance at the $3500 mark needs an additional push – primarily from news events. Unless that happens, expect the price of Gold to hover between the $3200 and $3500 levels.
If the Core PPI numbers announced on May 15th, or the Manufacturing PMI figures announced on May 22 are detrimental to USD, then expect the breach to happen around this time.
Until then, it’s a day trader’s playground as Gold will continue to bounce between the defined S/R levels.