Gold Technical Forecast: XAU/USD Weekly Trade Levels
- Gold surges more than 12% off October low- XAU/USD stretches into record close high
- The immediate focus is on whether bulls can break through this threshold into the close of the year- exhaustion risk rises while below
- Bullish scenario remains viable while above the weekly low, with a decisive close beyond resistance needed to fuel the next major leg of the rally.
- Resistance 4356 (key), ~4430s, 4603– Support 4175, 4112 (key), 4000
Gold prices surged this week with XAU/USD rallying into pivotal resistance near the record highs in the wake of the Fed rate decision. Weekly momentum remains in overbought territory and while the broader outlook is still constructive, the immediate advance may be vulnerable while below confluent resistance. A decisive reaction here will be critical in determining whether the next leg of the rally can take hold into year-end or if a pullback is needed to reset momentum. Battle lines drawn on the XAU/USD weekly technical chart.
Gold Price Chart – XAU/USD Weekly
Chart Prepared by Michael Boutros, Sr. Technical Strategist; XAU/USD on TradingView
Technical Outlook: In last month’s Gold Technical Forecast we noted to, “be on the lookout for a possible exhaustion low in the weeks ahead. The immediate focus is on a breakout of last week’s range for near-term guidance here. From a trading standpoint, losses should be limited 3720 for the 2025 uptrend to remains viable, with a close above 4192 needed to fuel the next leg higher in price.” XAU/USD broke higher three-weeks later with the advance extending into resistance on Friday at the record high-day close (HDC) and the 100% extension of the late-October advance at 4356. Despite the late-week surge, gold pulled back more than 1.2% off the highs and the immediate focus is on inflection off this threshold in the weeks ahead with the recent advance vulnerable while below.
Initial weekly support now rests with the 38.2% retracement of the late-October advance at 4175 and is backed by the record high-week reversal close at 4112- losses below this threshold would threaten a more significant correction. Subsequent support rests at 4000 with broader bullish invalidation at the October low at 3886. Note that the lower parallel of the yearly pitchfork converges on this threshold over the next few weeks and break below would suggest a larger trend reversal is underway.
A topside breach / close above 4356 would be needed to mark resumption of the yearly uptrend with subsequent resistance objectives eyed 75% parallel (currently near ~4430s) and the 1.618% extension of the 2024 December rally at 4603. Note that the upper parallel converges on this threshold next week- look for a larger reaction there IF reached.
Bottom line: Gold stretched into resistance at the record high-day close today and the focus is on a reaction off this mark into the close of the year. From a trading standpoint, losses should be limited to 4112 IF price is heading higher on this stretch with a weekly close above 4356 needed to fuel the next leg of the gold rally.
Keep in mind that we get the release of the November Non-Farm Payroll report and the Consumer Price Index (CPI) next week. Stay nimble into the releases and watch the weekly close for guidance here. Review my latest Gold Short-term Outlook for a closer look at the near-term XAU/USD technical trade levels.
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--- Written by Michael Boutros, Senior Technical Strategist
Follow Michael on X @MBForex
