Analysis of XAU/USD Chart Reveals Bearish Signals

Today’s XAU/USD chart suggests that gold may be losing its appeal as a safe-haven asset, as increasing media reports of a potential meeting between US and Russian leaders could ease geopolitical tensions.

A sharp decline, indicated by the arrow, highlights the dominance of supply forces, resulting in several bearish signals on the XAU/USD price chart from a technical analysis perspective:

→ Firstly, this drop formed a bearish candlestick on the 4-hour chart with the highest trading volume on the COMEX exchange (part of the CME Group) – a key global centre for gold futures trading.

→ Secondly, a bearish double top pattern (A-B) is evident, with support at $2878 and resistance at $2940. A break below this support could see prices targeting $2816, in line with the pattern’s trading rules.

→ Thirdly, the local support observed on Friday at $2915 quickly gave way to selling pressure and may now act as resistance.

As a result, gold prices have fallen below the lower boundary of the regression channel that started in late January, while the Rate of Change indicator has dropped to its lowest point in 2025.

This could signal a significant shift in market sentiment towards gold in the medium term, potentially influenced by the Trump administration’s intentions to end the war in Ukraine.

For a long-term outlook on gold prices, we recommend reviewing gold price forecasts for 2025 and beyond.

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