(MENAFN- Daily Forex) Today's Gold Analysis Overview:

• The overall of Gold Trend: Subject to a bearish technical correction.
• Today's Gold Support Points: $3970 – $3910 – $3850 per ounce.
• Today's Gold Resistance Points: $4080 – $4140 – $4200 per ounce.

Today's Gold Trading Signals:

• Sell Gold: From the resistance level of $4100, with a target of $3940, and a stop loss at $4170.
• Buy Gold: From the support level of $3890, with a target of $4100, and a stop loss at $3820.

Technical Analysis of Gold Price (XAU/USD) Today:

At the start of this important week's trading, gold futures fell sharply. According to performance across gold trading company platforms, spot gold prices struggled to hold the psychological $4000 per ounce level. The gold indicator had seen a sharp increase over the past month as investors flocked to traditional safe-haven assets. With geopolitical and economic tensions receding, gold prices began to fall and stabilize. Following recent trading and profit-taking sell-offs, gold prices plummeted to the support level of $3971 per ounce. Despite the decline since approaching $4,400, the gold price indicator is still up by 52% this year.

In related performance, silver prices, gold's sister commodity, also saw a sharp drop at the beginning of the trading week, with losses taking them to $46.725 per ounce. As with gold, silver prices remain up by approximately 60% since the start of 2025.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Gold sales are normal amid the US-China truce

Across reliable trading company platforms, metal markets are witnessing a retreat in selling amid expectations that the United States and China are close to reaching a trade agreement. In this regard, US President Donald Trump told reporters aboard Air Force One en route to South Korea during his Asian tour that he expects to "come to" a deal. Trump added: "I have great respect for President Xi, and I think we'll come to a deal." "China is coming along, and it's going to be very interesting."

Trump is scheduled to meet with Chinese leader Xi Jinping later this week.

On another front that could affect gold trading, the Federal Reserve will hold its two-day Federal Open Market Committee (FOMC) meeting this week. The US central bank is widely expected to cut interest rates for the second consecutive month, following a quarter-point cut, bringing the new target range for the federal funds rate to 3.75% or 4.00%.

It remains to be seen whether this decision has been pre-emptively priced in. According to commodity market experts, lower interest rates could support the prices of non-yielding assets (like gold). A potential trade agreement between the US and China supports risky assets and negatively impacts gold trading, but it should also be remembered that a potential tariff reduction will allow the Federal Reserve to cut interest rates further. Lower real interest rates are expected to support gold demand.

Overall, the market consensus expects the Federal Reserve to cut US interest rates by 25 basis points, so we do not anticipate a significant change in the stance of the FOMC meeting. The rise in US Treasury yields and the strength of the US Dollar have also weighed on gold prices at the start of the trading week.

EURUSD Chart by TradingViewGold Technical Forecast:

Based on the latest daily chart movements, the gold price trajectory has strengthened its bearish momentum by breaking the psychological $4000 per ounce level. This move has pushed the 14-day Relative Strength Index (RSI) towards the neutral mid-line between bear and bull control. The bears will prevail if selling intensifies, driving the price towards the support levels of $3955, $3880, and $3800, respectively. Conversely, for the same time frame, the bullish scenario for gold will gain positive momentum by returning and stabilizing above the resistance of $4120 per ounce.

Gold trading will remain supported by global trade and geopolitical tensions and central bank gold bullion purchases Tips:

Seize the upcoming gold buying opportunities if prices fall to the $3,880 support area, but never take risks.

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