After an explosive run to new peaks, the latest gold price forecast suggests the metal may pause as it digests recent gains near key resistance.
Gold hits fresh record high before easing below $4,600
Gold (XAU/USD) is trading around $4,580 on Monday, up 1.60% on the day, after setting a new record at $4,601.32. The move extends a powerful bullish trend seen in recent weeks. However, after briefly piercing the psychological $4,600 level, price has started to consolidate, hinting at a potential cooling phase.
Moreover, the new all-time high at $4,601.32 reinforces the strong uptrend that has dominated the metal since earlier advances from below $4,300. That said, the inability to hold above the $4,600 handle on the first attempt suggests that short-term buyers may now become more selective.
Macroeconomic backdrop and safe-haven flows
From a macro perspective, the environment remains broadly supportive for XAU/USD, even if it is not the primary driver of intraday swings. Persistent geopolitical tensions and concerns over the independence of the Federal Reserve continue to sustain safe-haven demand. However, this fundamental backdrop has recently taken something of a back seat to technical dynamics.
At the same time, a softer US Dollar (USD) is underpinning the precious metal, making it more attractive to non-dollar investors. Slightly stronger-than-expected US labor data, though, have curbed expectations for aggressive monetary easing in 2026. As a result, the fundamental upside has been modestly restrained compared to earlier in the rally.
Short-term technical picture on the 4-hour chart
On the 4-hour chart, XAU/USD trades near $4,584.50, with technical indicators still skewed to the upside. The 50-period Simple Moving Average (SMA) is trading above the 100-period SMA, reinforcing the bullish bias. Moreover, both moving averages are trending higher, confirming that underlying momentum remains constructive despite overbought signals.
Price is holding comfortably above these reference averages, with the 50-period SMA currently around $4,431.11, offering dynamic support on any corrective dips. However, the 14-period Relative Strength Index (RSI) stands at 73.77, firmly in overbought territory. This elevated reading indicates stretched momentum, which could trigger a period of sideways consolidation or a mild pullback.
Key resistance and support levels for traders
Immediate resistance is clearly defined at the recent record peak of $4,601.32. A clean break and sustained hold above this barrier would open the door to further upside in the current gold price forecast, potentially extending the existing uptrend. However, repeated failures to overcome this level could invite profit-taking and a deeper consolidation phase below $4,600.
On the downside, initial support is located near $4,550, with an additional horizontal floor around $4,500. These zones are likely to be tested on any corrective move if bullish momentum cools. Moreover, traders will closely watch how price behaves around these levels, as a firm rebound would signal that buyers remain firmly in control.
Trend line support and implications for momentum
The rising trend line drawn from $4,274.47 continues to underpin the broader bullish structure, reinforcing the positive bias. This ascending line offers a secondary support area close to $4,470.87, which could attract dip buyers on any sharp retreat. However, a clear break below this trend support would warn that the short-term advance is losing strength.
Additional support around the $4,500 mark further strengthens the technical floor that underlies the recent surge. A sustained hold above $4,550, $4,500, and the rising trend line would keep the near-term tone positive. That said, a firm rejection near the record high and a drop below these reference points would likely shift price action into a broader consolidation phase.
Outlook for the coming sessions
In the sessions ahead, market participants will monitor whether Gold (XAU/USD) can build acceptance above the $4,600 region or instead remain capped below that landmark level. Moreover, incoming macro data, particularly from the United States labor market and policy signals from the Fed, could influence expectations for 2026 rate cuts and, by extension, bullion appetite.
Overall, the near-term technical landscape remains bullish, supported by rising SMAs and a strong upward trend line. However, the overbought RSI and proximity to record highs argue for caution, as any negative catalyst could spark a corrective phase. For now, as long as price holds above the key support band between $4,470.87 and $4,500, the broader uptrend appears intact despite the latest consolidation.
Source: https://en.cryptonomist.ch/2026/01/12/gold-price-forecast-pause/
