Gold Price Outlook: XAU/USD continues to decline as sellers eye the $4,400 level

Gold Faces Continued Decline as Bears Target Key Support

Gold (XAU/USD) extended its losses for a second straight session on Thursday, retreating after failing to break above the $4,500 mark. Sellers are now eyeing the previous resistance zone around $4,400, reflecting a broader downturn in precious metals.

Market participants appear to have set aside worries over escalating geopolitical tensions in regions such as Venezuela, China, Iran, and Greenland. Instead, attention has turned to Friday’s upcoming US Nonfarm Payrolls report, which is anticipated to provide further insight into the Federal Reserve’s approach to monetary policy easing.

Technical Overview: Bearish Signals Strengthen

XAU/USD is currently trading near $4,428.46, drawing closer to the $4,400 level. This area is significant as it aligns with the 100-period Simple Moving Average (SMA)—a key support since mid-November—and coincides with the highs from December 31 and January 2. The formation of a lower high this week, along with bearish technical indicators, points to the possibility of a deeper pullback.

• The MACD histogram has turned negative, with the MACD line dropping below the Signal line, signaling downward momentum.
• The Relative Strength Index (RSI) has slipped under the crucial 50 threshold, indicating a shift into bearish territory.

Should gold fall decisively below the $4,400 support, it could pave the way for a move toward the January 2 low at $4,309, as well as the December 16 and 31 lows near $4,270. On the upside, immediate resistance is found at Tuesday’s peak around $4,500, with the all-time high at $4,449, reached on December 26, remaining a key level to watch.

(This technical analysis was prepared with assistance from an AI tool.)