Gold (XAU/USD) Price Analysis – Momentum Holds Above $4,190 as 2026 Forecast Targets $4,800

Gold Sustains Elevated Levels Amid Fed Pivot Bets and Central Bank Demand

Gold (XAU/USD) remains resilient after touching an intraday high of $4,259.34 and closing near $4,198.69 per ounce, down only 0.24% as profit-taking set in ahead of the upcoming Federal Reserve meeting on December 9–10. Traders booked gains following a powerful rally that has driven the metal more than 60% higher year-to-date, placing it 20% above its 200-day moving average. The current correction appears technical rather than structural, with support forming near $4,192.36, a critical Fibonacci retracement zone that continues to attract institutional interest.

Fed Policy Shift and Dollar Dynamics Shape Gold’s Short-Term Path

Markets now price an 87% probability of a 25 bps Fed rate cut in December, as inflation indicators soften. Core PCE inflation eased to 2.8%, and job data revealed a sharp 32,000 decline in private payrolls, signaling labor market cooling. While the U.S. dollar remains firm, its inability to rally despite weaker employment data suggests underlying vulnerability. Lower yields are supporting the gold narrative, with the 10-year Treasury yield hovering near 3.88%, down from 4.45% last month. The mix of easing policy and slowing inflation keeps gold’s safe-haven appeal intact.

Institutional Demand and Central Bank Accumulation Reinforce Bullish Structure

Global gold accumulation by central banks has reached its highest level in modern history. Ventura Capital projects gold could advance to $4,600–$4,800 in 2026, citing aggressive central bank buying, persistent inflation, and widening U.S. fiscal deficits. Deutsche Bank lifted its 2026 forecast to $4,450, maintaining a bullish stance through 2027 with targets near $5,150. Morgan Stanley sees $4,500 per ounce by mid-2026, expecting continued ETF inflows and steady official-sector purchases even if buying moderates. Together, these institutional forecasts point to structural strength rather than speculative excess.

Technical Picture: Key Support and Resistance Levels

From a charting perspective, XAU/USD shows immediate support at $4,200, reinforced by the 50-day moving average at $4,076.14. A breakdown below that level could open the door toward $4,056–$3,950, though momentum remains constructive above $4,192. Resistance zones lie between $4,255–$4,300, with further upside capped near $4,381–$4,441. A clean breakout above $4,300 would signal renewed buying power capable of driving gold toward the $4,500 psychological barrier.

Macro Tailwinds: Inflation Hedge and Fiat Currency Deterioration

Gold’s nine consecutive quarterly gains mark the strongest streak in over five decades, reflecting declining faith in fiat stability. The metal has appreciated over 59% year-to-date, outpacing global equity indices. Analysts attribute this surge to what Ventura described as a “systemic deterioration in fiat value”, intensified by expanding U.S. deficits and trade imbalances. The narrative of gold as the second most important reserve asset after the dollar is gaining momentum, with sustained buying from Asian and Middle Eastern central banks, including China and India.

Regional Drivers: India, China, and Physical Market Distortions

In India, gold trades roughly 15% higher than Dubai, a spread caused by high import duties and rupee weakness. The domestic market’s structural premium underscores ongoing demand despite policy friction. In China, retail gold buying has softened slightly as traders await corrections, but institutional accumulation remains steady. This divergence keeps the global market balanced, with physical shortages emerging in key bullion hubs such as Singapore and Zurich.

Profit-Taking and Market Reset After Record Run

After reaching an all-time peak near $4,398 on October 20, 2025, gold corrected to $3,891, an 11% pullback before rebounding sharply to $4,299 in early December. This pattern reflects controlled profit-taking amid optimism for a December Fed rate cut, not structural weakness. Gold’s recovery from its November low demonstrates investor conviction that policy easing will underpin higher prices into 2026.

Corporate and ETF Activity: Gold.com (NYSE:GOLD) and Institutional Trends

At the corporate level, Gold.com (NYSE:GOLD) has seen its average one-year price target raised 29.7% to $35.02, with the upper range near $47.85 per share. Institutional positioning remains strong despite quarterly portfolio rotations — Royal Bank of Canada, First Eagle, and Ameriprise collectively hold over 70 million shares in gold-related equities and funds. The put/call ratio of 0.16 on GOLD signals bullish sentiment in derivative markets. ETF inflows, especially in the SPDR Gold Trust and iShares Gold ETF, have mirrored spot gold’s trajectory, reinforcing the underlying bid from institutional portfolios.

Technical Indicators: RSI, Momentum, and Trend Confirmation

The Relative Strength Index (RSI) stands near 58, indicating a moderate uptrend with room to extend. ADX around 37 suggests a sustained trend, while MACD remains slightly bullish, confirming that the recent dip is consolidation, not reversal. The 50-day EMA at $4,120 is converging toward the 100-day EMA, setting up a potential golden cross that could mark the start of the next leg higher if the Fed delivers the anticipated policy pivot.

2026 Forecast Outlook: $4,600–$4,800 Range in Sight

Forecasts from Ventura, Deutsche Bank, and Morgan Stanley converge around a $4,600–$4,800 target for 2026, citing inflation persistence, central-bank demand, and ETF inflows. HDFC Securities recommends investors maintain a 5–10% portfolio allocation in gold and silver, given the asset’s role as a hedge against geopolitical volatility and monetary uncertainty. The medium-term bias remains upward, supported by real rate compression and continued structural demand.

Verdict: Bullish Bias – BUY on Dips

With gold holding firm above $4,190 and fundamentals aligning across monetary, institutional, and technical fronts, XAU/USD remains in a confirmed bull cycle. The bias is Bullish, favoring BUY on dips toward $4,150–$4,200, targeting $4,450–$4,600 by mid-2026. Unless the Fed surprises with hawkish commentary or central banks abruptly scale back purchases, gold’s trajectory remains intact, positioning it as one of the few assets bridging monetary policy, inflation protection, and systemic risk hedging into the next cycle.

That’s TradingNEWS

Range and Support Structure

A failed move keeps gold trapped inside a five-day tight range between $4,164 and $4,264. The rising 10-day average at $4,186—successfully defended this week—remains the primary near-term dynamic support alongside this week’s $4,164 low. As long as gold holds above the 10-day line, the bias stays bullish.

Confirmation Levels

A daily close above Thursday’s $4,219 high would show minor strength, but true breakout validation requires settlement above last week’s high and the six-week peak at $4,245. A decisive push and sustained trade above $4,264 is ultimately needed to prove buyers are back in charge.

Weekly Pattern Evolution

The recent correction ended with a higher swing low at $3,886, followed by a repeating sequence: inside week to upside breakout to inside week to upside breakout. This week has deviated slightly with a very narrow range mostly near last week’s highs instead of a fresh advance, yet the relative strength is clear, and gold is on track for its third-highest weekly close in history.

Broader Support Backdrop

Friday’s bounce off the 10-day average reinforces its short-term importance. Should it fail, the 20-day average at $4,144—currently converging with the late-November uptrend line—steps up as the next significant dynamic defense.

Outlook

Gold continues flashing higher-price potential, but momentum remains conspicuously absent. Hold the 10-day average and deliver a close above $4,241–$4,245 to keep the bull case intact and target $4,264+; failure to do so risks another leg lower toward the 20-day/trendline confluence while the larger uptrend stays safe with price above the 50-day average, now at $4,076.

For a look at all of today’s economic events, check out our economic calendar.

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Copper price continued forming bullish trading, attempting to settle above $5.3200 level, to open the way for achieving more gains as we expected, the unionism of providing positive momentum by the main indicators will reinforce the chances of reaching $4.5000, which might form a key barrier against the current trading.

While the fluctuation below $5.2000 might force it to delay the bullish attack temporarily, which forces it to activate the bearish corrective track by targeting $4.9500 level before any attempt to record more positive targets.

The expected trading range for today is between $5.2500 and $5.5000

Trend forecast: Bullish

Is the Cold Snap Enough to Sustain the Rally?

Prices climbed 1.36% on Thursday, recovering from early session losses to hit their highest level in nearly three years. The driver? Fresh forecasts from Atmospheric G2 showing sub-normal temperatures across the eastern U.S. from December 9–13. That’s pushing expectations for stronger heating demand, a key seasonal tailwind. Traders have seen this pattern before — winter risk premium creeping in fast, and positioning tends to follow.

Still, not all the data was bullish. The EIA reported a storage draw of just 12 bcf for the week ending November 28, well below expectations for an 18 bcf drop. The five-year average draw for this week is 43 bcf. That’s a miss, and it shows inventories remain comfortable — now 5.1% above the five-year average, even if they’re slightly below last year’s levels. Bottom line: storage isn’t screaming scarcity.

Strong Demand, But Supply Isn’t Backing Off

On the production front, dry gas output hit 111.5 bcf/day on Thursday, up more than 6% from a year ago. And despite the cold snap, supply hasn’t flinched. In fact, active rigs climbed to 130 last week, a 2.25-year high. That supply confidence might cap upside in the near term unless weather turns severe.

Demand is holding up. Thursday’s lower-48 consumption hit 118.1 bcf/day — a 12% jump year-over-year. Meanwhile, LNG flows ticked down slightly to 17.7 bcf/day, but that’s still a historically strong level. Power burn is also supportive: U.S. electricity output rose 2.1% y/y last week, with a 3% gain over the trailing 12 months. Traders are watching for whether this demand can keep pace with elevated production — or if another storage miss cools the rally.

Can Prices Push Through Resistance — or Will the Dip Get Bought?