Choppy Action Near $2,700: What Gold Traders Should Monitor Next [Weekly XAU/USD Analysis + Forecast]

Hello, fellow traders!

Gold had a strong week, extending its winning streak to three weeks in a row and hitting multi-week highs above $2,720.

This is the highest we’ve seen since mid-December, helped by a weaker US Dollar and growing hopes that the Federal Reserve might cut interest rates further after softer inflation data.

Looking ahead, the traders are waiting for Trump’s Inauguration Day and new policies like tariffs and fiscal changes that could drive inflation higher and possibly change the Fed’s current approach to interest rates.

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In this week’s update, I’ll:

• Decode the technicals: pinpoint the hidden technical clues that could signal a sudden breakout—or a ruthless selloff.

• Unpack the global data: highlight the global economic numbers making waves and where they could push Gold’s price in the mid term.

• Identify strategic “make-or-break” price zones

• Spot the sentiment shifts: what’s brewing beneath the surface and why this matters for Gold’s future direction.

• Predict what’s next for Gold: give away my short-term and mid-term calls for where XAU/USD is headed.

📊 Let’s look at the technical data

Last 3 months - 1h charts

Key takeaway:

Short-term sentiment leans slightly bearish to neutral. Gold is in what appears to be in the final stage of an A-B-C correction, so near-term dips or choppiness are more likely.

Breaking below $2,690 will likely accelerate bearish momentum toward