Gold (XAU/USD) is trading sideways at the start of the week, holding above support at $4,040 after last week’s sharp pullback from monthly highs near $4,250.
Upside attempts remain capped below $4,100 as investors stay on the sidelines ahead of a backlog of delayed US economic releases that could reshape expectations for the Federal Reserve’s next steps.
Precious metals are fluctuating within a tight range through Asian and European hours. Recent commentary from Fed officials has leaned hawkish, offering the US Dollar some support, but traders remain hesitant to commit to a direction until fresh US macro data provides clarity on growth and policy outlook.
Technical analysis: XAU/USD treads water in mid-range
The technical setup for XAU/USD remains moderately bearish after a 2.6% decline over the past two sessions. The 4-hour Relative Strength Index (RSI) is flat below the 50 mark, while the MACD histogram continues to print red bars. Although the MACD line appears to be stabilizing, signaling waning downside momentum, the metal has yet to confirm a meaningful shift in trend.
Firm support sits near $4,040, where the 61.8% Fibonacci retracement of the early-November rally aligns with the November 14 low – a typical corrective target. A break below this zone would expose the psychologically significant $4,000 level, which also coincides with the 78.6% retracement of the same bullish cycle.
On the upside, immediate resistance is aligned with the $4,100 area, marking today’s session highs. Beyond that, the November 11 high and November 13 low around $4,170 represent a key barrier.
A sustained break above this region would open the path toward last week’s peaks at $4,210 and $4,250, registered on November 14 and 13 respectively.
