Gold Price Forecast: XAU/USD Tests $3,340 Support Amid Bearish Pressure

Gold Price Forecast: XAU/USD Tests Critical $3,340 Support as Bearish Pressures Mount

Gold (XAU/USD) extended its reversal on Friday, weakening as improved market sentiment reduced demand for safe-haven assets. The metal has retreated from recent weekly highs near $3,450 and is set for a 2.75% weekly decline, marking its worst performance in six weeks.

Bearish Momentum Builds After Pattern Breakdown

XAU/USD broke below a wedge pattern, signaling growing bearish momentum. Investors are increasingly optimistic about a peaceful resolution to the Middle East conflict, diminishing gold’s appeal as a refuge.

Middle East Peace Hopes Weaken Safe-Haven Demand

US President Donald Trump’s assurance to take up to two weeks to decide on military action against Iran helped ease fears of a full-scale war. Concurrently, ongoing talks between European negotiators and Iranian officials have raised hopes for a negotiated end, boosting risk appetite in the markets and pressuring gold prices.

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