The price of gold (XAU/USD) is declining on Monday to a level of 3,333 USD, as the American markets are closed due to the observance of Memorial Day. A correction occurred in response to former US President Donald Trump’s statement on social network Truth Social about delaying the introduction of 50% tariffs against the European Union until July 9th. This decision was made after a telephone conversation between Trump and the President of the European Commission Ursula von der Leyen (Ursula von der Leyen) on Sunday, and it likely gives Europe time to conclude a trade deal with the Trump administration.
Despite the improvement in market sentiments, the gold rally is not yet over. The easing of trade rhetoric reduces interest in gold as a safe asset, but this interest remains due to growing concerns about the budget stability of the US. Investors are worried that Trump’s new tax legislation, which passed the House of Representatives last week and will soon be discussed in the Senate, might lead to an even greater increase in the US government deficit and debt.
Citigroup Inc.’s analysts have raised the three-month price forecast for gold to 3,500 USD per ounce, citing concerns over trade tariffs, high geopolitical risks, as well as a robust economic growth in China and India. The demand for gold is currently at its peak across all sectors, noted Citibank analysts in their client note, according to Bloomberg.
GOLD Forecast and XAU/USD Analysis for May 27, 2025
The quotations for XAU/USD are continuing their movement within the context of a corrective development and a bear channel. At the time of this forecast, today’s Gold price is $3329 per Troy Ounce. Moving averages indicate a short-term bullish trend. The prices have penetrated the area between signal lines upwards, which indicates the buyers’ pressure on the asset and the potential for continuation of growth from current levels. Currently, we should anticipate an attempt to develop a bearish correction in the Gold price course and testing the support level close to the region 3295. From where we should expect a rebound upward and continue the rise in the Gold price with a potential target above the level 3475.
Additional indication of a decrease in the price quotations for XAU/USD would be testing the support line on the Relative Strength Index (RSI) indicator. The second signal will come from bouncing off the lower border of the bullish channel. Confirmation that the option of rising prices for Gold will not happen by May 27, 2025, is the fall in quotations and breaking through the level of 3265. This would point to a break-through support area and a continuation of the drop in quotation levels below the 3185 level. Expect acceleration upwards in XAU/USD quotations when breaking through the resistance zone and closing prices above the 3405 level, which indicates a breakthrough of the upper border of the bullish channel, suggesting an increase by the width of the channel.
GOLD Forecast and XAUUSD Analysis for May 27, 2025 anticipates an attempt at developing a bearish price correction and testing the support area near the level of 3295. Subsequently, continued growth in metal prices to levels above 3475. The rise in Gold prices would be canceled by the fall in the asset’s value on markets and breaking through the level of 3265. This will indicate further price drop for Gold with a potential target below 3185 mark.
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