Gold plunged over 3% on Friday following a spike to $4,697.66 earlier last week, trading at $4,448.47 by Monday morning UTC. The precious metal retreated sharply from its three-month high after briefly approaching key resistance levels, but technical analysts say the bullish structure remains intact. The critical development is a golden cross formation—the 50-day exponential moving average has crossed above the 200-day EMA, with both lines rising and providing layered support between $4,314 and $4,370. XAU/USD now trades within a former resistance zone that has flipped to support at $4,370-$4,546.
For the bullish scenario to resume, gold must reclaim $4,546 and break above Tuesday’s $4,697.66 high before targeting $4,755 and ultimately $4,855. Goldman Sachs projects $4,900 by end-2026, roughly 10% above current levels, though the bank warned on August 28 that options hedging could amplify volatility in both directions during the recovery phase.
FXnCO Insight
Watch for a decisive daily close above $4,546 to signal renewed upside momentum toward the $4,755-$4,855 resistance zone.
Source: Finance Magnates