Silver (XAG) also shows pressure around the support zone of $70-$72. This weakness is due to the continued sell off in precious metals ahead of the big U.S. jobs data.
Gold Price Forecast: Price Compression Builds Before Breakout
XAUUSD Consolidates Between 50-Day and 200-Day SMAs
The gold price consolidates in tight range between the 50-day and 200-day SMAs. This consolidation indicates price compression. This consolidation has been taking place since mid-May 2026 and prices have failed to break these moving averages to find the next move.
But the 50-day SMA is now neutral, which suggests that a break above $4,650 will likely push gold prices towards the $5,000 resistance area. But a break below $4,350 will likely take prices towards the $4,000 area.
Despite this price compression, the broader consolidation of the gold price remains between $4,000 and $5,000. The next move in gold depends on a break of any of these levels.