Gold’s Bearish Trend Continues as Investors Shift Focus
Gold prices have dipped into the 3200s zone, following a bearish trend. The easing of global tensions, particularly the tariff situation, has led investors to move away from safe-haven assets like gold. Instead,they are now favoring riskier assets such as stocks and cryptocurrencies.
This week, gold is expected to consolidate before the Federal Open Market Committee (FOMC) meeting on Wednesday. Here’s a look at the key pivot levels for trading gold in the XAUUSD market from May 5th to May 9th, 2025.
Following last week’s forecast, if you sold gold from the $3342-$3353 range, you would have seen a drop of over 1500 points. Buying levels from $3247-$3193 also showed a 900-point move.
Key Economic Events This Week
Several U.S. economic reports will be released this week, perhaps impacting XAUUSD:
- Monday, May 5: ISM Services PMI – This index measures the health of the U.S. services sector. A poor figure could boost gold prices, while a strong report might support the USD, pushing gold lower.
- Wednesday, May 7: FOMC Press Conference – After the FOMC releases its monetary policy statement, any hints of interest rate changes could cause significant volatility in XAUUSD.
- Thursday, May 8: Unemployment Claims – A rise in claims could signal a slowing labor market, making gold more attractive as a safe haven.
Gold is showing signs of strength after two weeks of decline. The weekly FVG is still pending, but a major buy move is expected soon. The buying zone is $3194-$3168, where bullish momentum is present.
On the 4h chart, immediate buying levels are at $3259-$3239. A short trade can be opened around $3305-$3313, which is the POC level and 1hr bearish order block.
To summarize, the best strategy is to look for buys in higher time frame levels and sells in lower time frame levels. Mark these levels on your chart for easier trading.
Support Levels: $3194-3168 (weekly FVG), $3259-3239 (4h FVG and VAL).
Resistance Levels: $3305-3313 (1hr OB and POC).
