Gold shows potential bottoming behavior after testing the 200-day moving average, with bullish reversal signals emerging as price approaches key resistance at 50-day and 20-day levels.
Gold prices rebounded sharply after weak GDP data and support at the 200-day moving average revived bullish XAUUSD sentiment.
Gold prices are rebounding sharply off the monthly lows after defending a critical technical support zone, raising the question of whether a more significant low may finally be in place. The recovery has improved near-term momentum following weeks of sustained selling pressure, but XAU/USD now faces its first major resistance test within the broader downtrend structure.
Gold and silver moved higher as traders reduced their bets on hawkish Fed.
Gold drops to fresh two-month low as markets focus on inflation risks, US PCE data
Gold prices remain trapped in an increasingly uncomfortable middle ground as investors attempt to balance mounting geopolitical tensions against a steadily firmer US rates backdrop, all thanks to elevated oil prices. Pressure is increasing and the metal is on the verge of a break below the 200-day moving average, which hasn't happened since September 2023.
Gold Price Forecast: Trades near two-month low ahead of US PCE Inflation data
Gold and silver showed limited conviction as the Middle East truce held firm. Gold broke decisively under $4,500 with bearish channel structure while silver traded at $73.42.
Gold fell to 4,387 USD per troy ounce on Thursday, marking its third consecutive session of losses. The market remains cautious amid persistent uncertainty surrounding negotiations between the US and Iran, which continue to fuel concerns over inflation and the prospect of prolonged high interest rates.
Both gold and silver are getting hosed in Asia, coinciding with fresh fighting between US and Iranian forces in the Gulf. What I find interesting is that crypto is getting smoked too, even though US yields are well off levels seen earlier this week while equities continue to levitate within spitting distance of record highs.
This is a follow-up analysis on the prior report, “Chart alert: Gold (XAU/USD) rally faces roadblock at 20-day and 50-day moving averages”, published on 7 May 2026.
Gold (XAU/USD) remains under pressure after breaking below its key 200-day moving average for the first time since March 2026. Rising US Treasury real yields and persistent bearish momentum continue to weigh on the precious metal as investors rotate toward yield-bearing assets.