🚨 $XAU Gold Price Forecast: Consolidation ≠ Weakness
Gold may enter a brief consolidation phase in the coming week, but the overall bullish trend remains intact. After a strong rally, sideways movement is normal, allowing the market to absorb gains before moving higher. This pause should not be seen as a weakness.
Key Points:
Buyers in Control: Short-term hesitation aside, buyers hold sway, with gold staying above crucial technical levels.
Limited Downside Risk: Selling pressure mainly comes from short-term profit-taking, not a shift in market sentiment.
Macro Conditions: Persistent inflation risks, high government debt, and potential monetary easing keep gold attractive as a store of value.
Central Bank Activity:
Diversification: Central banks, especially in emerging markets, continue increasing gold reserves to reduce reliance on fiat currencies.
Strong Foundation: Steady demand from central banks supports the market, limiting downside risk during consolidation phases.
Technical Perspective:
Consolidation as a Base: Consolidation above prior breakout levels often sets the stage for renewed upward momentum.
Impulsive Move Higher: Maintaining the current range may set up gold for another significant price surge once new catalysts emerge.
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