A potential decline in XAU/USD is signaled by two key factors:
- A test of the resistance line on the RSI indicator.
- A rebound from the upper border of the bullish channel.
If XAU/USD rises above 2825 on 29 January 2025, this will invalidate the bearish scenario, indicating a breakout of the resistance zone and a likely climb toward 2865.
Conversely, a strong sell-off is expected if prices break below 2715, signaling a breach of the lower border of the bullish channel. This could lead to an accelerated decline, with a target near 2655.
Short-term movement suggests a possible attempt to test resistance at 2785 before continuing downward. A breakout above 2825, however, would negate the downtrend and indicate sustained growth in Gold prices, targeting levels above 2865.
In summary, the outlook remains bearish unless the 2825 level is surpassed. Traders should monitor key resistance and support zones closely.