Gold Price Forecast: XAU/USD Slips Toward Key 50-Day Moving Average Support

Gold prices extended their downward move on Wednesday, approaching a critical technical support level near the 50-day moving average (MA), as bearish momentum weighed on investor sentiment.

As of the latest trading session, spot gold (XAU/USD) dipped to an intraday low of $3,168, marking a continuation of this week’s losses. The decline follows a failed breakout attempt and a decisive breach below the 20-day MA, which had previously served as near-term support.

Technical Breakdown: Bearish Signal Strengthens

Wednesday’s price action triggered a bearish continuation signal, as gold broke below Tuesday’s inside-day pattern. Inside-day formations often indicate a consolidation phase, but in this context, the breakout to the downside confirmed ongoing weakness. The failure to hold above the 20-day MA, a key short-term trend line, has added further pressure to gold’s price outlook.

While the price briefly found support at the April 3 swing high, the weak close near the session’s lows suggests this level may not hold for long. Currently, there are no strong signs of renewed demand from buyers, which could leave gold vulnerable to additional losses.

All Eyes on the 50-Day Moving Average at $3,150

With the 20-day MA breached, technical focus has shifted to the 50-day MA, now sitting at $3,150. This level acted as a strong support zone during the early April lows and may attract buying interest again if bullish momentum can return.

However, if the 50-day MA fails to hold, it could open the door to further downside. The previous rally exhibited characteristics of a blow-off top, followed by a false breakout above a rising trend channel. That failed breakout has now triggered intensified selling pressure, as failed technical patterns often lead to sharp reversals in the opposite direction — in this case, lower gold prices.

Bearish Scenario: Deeper Pullback Possible Below $3,150

Should gold breach the 50-day MA with conviction, the next downside targets may include the $3,100 psychological level and potentially the $3,075–$3,050 support zone. The lack of bullish confirmation and recent rejection from the $3,300+ area reinforces the possibility of a deeper correction.

Key Support & Resistance Levels

• Immediate Support: $3,150 (50-day MA), then $3,100
• Resistance: $3,200, followed by $3,245 (20-day MA)

---

Conclusion

Gold is currently under pressure as technical breakdowns weigh on sentiment. While the 50-day MA may offer near-term support, a decisive break below it could signal further downside. Traders and investors should monitor US Treasury yields, inflation data, and upcoming Fed commentary, all of which may influence gold’s next directional move.

Stay tuned to DailyForex.pk for real-time gold price forecasts, XAU/USD technical analysis, and expert updates on the global commodities market.

Stay Updated With Daily Forex Pakistan.