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Weekly Analysis List

XAU/USD Weekly Analysis

12/29/25

XAU/USD Weekly Analysis

Market Overview

XAUUSD Weekly Market Analysis
Date Range: 29 December 2025 – 02 January 2026
Currency Pair: XAU/USD (Gold vs USD)
Current Price: ~$4,515 – $4,532 per oz
Trend Bias: Strongly Bullish, but short term corrective risk
Range Outlook: Support 4,465 – 4,495 | Resistance 4,570 – 4,685

🔍 Fundamental Overview
Gold enters the final week of 2025 posting fresh all time highs, supported by a weakening U.S. dollar, safe haven demand, and strong institutional buying.
Macro Environment
• Gold continues to benefit from broad USD weakness, as the Federal Reserve is expected to continue easing in 2026.
• Markets remain defensive into year end due to geopolitical tensions and macro uncertainty, pushing investors toward safe haven metals.
• Central banks and ETFs remain aggressive net buyers, reinforcing the long term bullish backdrop.
Market Behavior
• Despite printing new highs near $4,550, profit taking has begun to appear, typical for thin holiday period liquidity.
• A controlled pullback occurred during the 29 Dec session, but buyers consistently defended lower levels around $4,470.

📊 Technical Analysis
XAUUSD maintains a well defined ascending bullish channel, but the market is currently showing early stage corrective behavior after extreme overbought conditions.
Support Levels
• 4,465 – 4,495: Primary weekly support zone; correction expected to test this level.
• 4,430 – 4,450: Secondary support; deeper pullbacks remain corrective, not bearish reversals.
• 4,435: Break below this level invalidates bullish scenario and could open downside toward 4,185.
Resistance Levels
• 4,570 – 4,605: Immediate resistance zone; breakout confirms trend continuation.
• 4,685: Bullish weekly target if the rebound holds.
• 4,800: Extended psychological target if momentum accelerates.
Indicators & Patterns
• Shooting Star on H4 near upper Bollinger Band suggests corrective pullback.
• RSI shows bullish trendline support, signaling trend continuation after correction.
• Strong year end momentum: price up over 70% in 2025, confirming dominant long term bullish structure.

📈 Trading Scenarios
✅ Bullish Setup
• Entry: Buy near 4,465 – 4,495 support zone
• Targets:
➤ 4,570
➤ 4,605
➤ 4,685 (extended)
• Stop Loss: Below 4,435
• Catalysts:
o Renewed USD weakness
o Safe haven flows
o Breakout confirmation above resistance
❌ Bearish / Corrective Setup
• Entry: Sell short at 4,570 – 4,605 rejection
• Targets:
➤ 4,495
➤ 4,465
• Stop Loss: Above 4,620
• Catalysts:
o Profit taking and thin liquidity
o Short term overbought signals
o Bond yield upticks or USD rebounds

Conclusion


🧠 Market Sentiment Summary
Gold remains in a strong multi month uptrend, supported by macro uncertainty, global central bank buying, and weakening USD conditions. Short term corrections are not trend reversals — they are typical consolidations before continuation.
Key sentiment drivers this week:
• Weak USD and expectations of further Fed easing
• Record level prices attracting both profit taking and renewed dip buying
• Year end low liquidity causing amplified intraday volatility
Overall, bias remains strongly bullish, with healthy corrective dips likely before the next leg higher.

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