Gold (XAUUSD) retreats slightly as market needs a pause

Gold (XAUUSD) prices have pulled back to 3,303 USD. It’s been a volatile week, but the precious metal is still closing it on a positive note. Find more details in our analysis for 23 May 2025.

XAUUSD forecast: key trading points

• Gold (XAUUSD) ends the week higher as safe-haven assets remain in demand
• US fiscal policy risks and global geopolitical tensions are expected to stabilise Gold (XAUUSD) quotes next week
• XAUUSD forecast for 23 May 2025: 3,310 and 3,346

Fundamental analysis

Gold (XAUUSD) prices are hovering around 3,303 USD per troy ounce at the end of the week, stabilising after Thursday’s pullback. The metal had a strong week overall, supported by its status as a safe-haven asset. Ongoing concerns about US fiscal policy kept investor demand for gold elevated.

A weaker US dollar also contributed to gold’s appeal, making the metal more attractive for international buyers. The recently passed tax bill in the US House of Representatives, which is now under Senate review, could add nearly 4 trillion USD to the budget, intensifying concerns over long-term fiscal stability. Moody’s credit rating downgrade in May has only reinforced these fears as both the budget deficit and debt servicing costs continue to rise.

Additional support came from renewed geopolitical risks following reports of a potential Israeli strike on Iranian nuclear facilities.

The outlook for Gold (XAUUSD) remains positive.

XAUUSD technical analysis

On the H4 chart, Gold (XAUUSD) has moved from brief consolidation around 3,335 into a corrective decline. The near-term expectation is stabilisation around 3,310.

If the market consolidates above 3,346, a return to the upward trend is possible, with the next target at 3,358.

Summary

Gold (XAUUSD) prices are declining slightly on Friday, but overall, the week has been productive. The Gold (XAUUSD) forecast for 23 May 2025 anticipates price stabilisation near 3,310, followed by a potential return to growth towards 3,346.