XAU/USD quotes continue to move within the context of a decline and descending channel development. At the time of this forecast posting, the price for Gold per Troy Ounce is $3146 USD. Moving averages indicate a short-term bearish trend. Prices broke through the area between signal lines downwards, which indicates selling pressure on the asset and potential continuation of the decline from current levels. Currently, we should expect an attempt at developing a bullish correction in Gold prices and testing the resistance level near the area around 3185. From there, it’s expected to see a downward bounce and continued price drop for Gold with a potential target below the 3045 level.
GOLD Forecast and XAUUSD Analysis for May 16, 2025
Additional indication for the decrease in XAU/USD quotes will be a test of the resistance line on the Relative Strength Index (RSI indicator). A second signal will be bouncing off the upper border of the bear channel. Cancellation of the price drop option for Gold on May 16, 2025 would be marked by a strong price rise and breaking through the level of 3245. This will point towards breaching the resistance area and continuation of the increase in asset quotes to an area above the level of 3295. Expect acceleration of XAU/USD quote decline with a break in support area and closing price below the level of 3115.
GOLD Forecast and XAUUSD Analysis for May 16, 2025 anticipates an attempt to develop a bullish price correction and testing the resistance area close to the level of 3185. Then, continuation of the decline in metal prices with the target below the level of 3045. A drop in gold prices would be cancelled by a strong increase in the asset’s value on markets and breaking through the level of 3245. This will indicate a continued rise in the Gold price with a potential target above the mark of 3295.
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