Gold’s Wild Ride: Is $3,500/oz Back in Play for XAU/USD?
Gold bulls are licking their chops again as XAU/USD flirts with territory not seen since its 2020 moonshot. The shiny stuff’s weekly chart shows a textbook retest of historic resistance—because nothing gets traders harder than a Fibonacci level.
Wall Street’s pet rock could soon smash through its psychological ceiling if macro conditions keep deteriorating. Fed pivot bets? Check. Geopolitical chaos? Double-check. Institutional FOMO? Oh, you better believe that’s checked.
Just remember: gold’s ’safe haven’ status hasn’t stopped it from getting dumped faster than a DeFi rug pull when liquidity dries up. But for now? The path to $3,500 looks clearer than a crypto exchange’s balance sheet (too soon?).
Previous week’s forecast recap of crypto.news
In the previous week’s forecast we marked two levels on the chart of gold as potential long position targets, which were $3261 and $3328, both of which have been hit successfully.
We also shared a selling level in the 4h timeframe from which price gave 470 pips and then continued its uptrend.
Now let’s start by discussing the key economic events of this week and their possible impact on the price of XAUUSD.
Key economic events of this week
Some significant U.S. economic reports are scheduled for release this week that are expected to impact XAUUSD.
A stronger USD and higher rates might cause gold to decline if the minutes indicate a hawkish Fed (leaning toward more rate hikes or tight monetary policy). Gold prices WOULD probably be supported by a dovish tone (rate reductions or worries about an economic slowdown).
- Strong GDP: Indicates a robust economy, which is negative for gold (USD up).
- Weak GDP: Increases recession fears → gold is positive (desire for safe havens).
Higher than anticipated claims point to a poor job market, which is good news for gold. Reduced claims might affect gold prices.
The Fed favors this inflation indicator.
PCE higher than anticipated: More Fed tightening = negative outlook for gold.
PCE below expectations: Reduces pressure on rate hikes therefore gold is positive.
Gold HTF Overview
Gold has already swept liquidity below the $3200 level and next targets should be external liquidity which is present at $3435 and $3500 respectively. Invalidation of this trade idea would be the break of $3120 level in the weekly timeframe.
Gold Forecast for May 26th to May 30th
Gold is showing bullish momentum in all lower time frames which makes buying an ideal position to enter and hold.
On the 4 hour timeframe the strongest buying level is coming up at the FVG, VAL, and order block of $3260-3208.
On the 1h timeframe there is an immediate buying opportunity as well from the levels of $3313-3291. This is due to the 0.618 fib level, POC, and FVG, and order block, all aligning at the level mentioned.
Trading Strategies & Investment Recommendation
To conclude, the SAFE strategy in gold is to look for buys in the lower time frame levels and the higher time frame levels as well. Selling is not recommended this week, as the risk to reward ratio may not be favorable for traders.
Support Levels
- $3260-3208 – 4h support, FVG, order block, VAL
- $3313-3291 – 1h bullish order block, FVG, POC, 0.618 Fib level
Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.
