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XAU/USD price outlook: Gold tests 0.786 resistance Arc – Medium-term outlook remains bearish toward 3,720

XAU/USD: Arc cycle analysis™

XAUUSD
Figure 1: XAUUSD 4h chart with Arc Cycle levels. Gold Spot / U.S. Dollar (XAUUSD) on the 4h chart with the Arc Cycle levels used in this analysis. Source: TradingView chart

Overview

Based on Arc Cycle Analysis applied to the 4h chart, Gold Spot / U.S. Dollar is testing the 0.786 Resistance Arc within the current Arc Cycle. Price has reached this Arc with strong upside momentum, and the key question is whether the Arc can absorb this momentum, while the medium-term view remains bearish with eyes on 3,720.

Table 1: XAU/USD Arc cycle analysis summary

Chart
Table 1: Key Arc Cycle readings for XAUUSD. Source: Arc Cycle Analysis™

Market Outlook

Price is testing the 0.786 Resistance Arc after a strong upside move, and the market now needs to show whether this Arc can absorb the current bullish momentum. The medium-term outlook for Gold remains bearish, with eyes on 3,720. However, no signal has been confirmed yet, and the preferred approach is to await a clear reaction at the Arc before anticipating the next move.

Author

Mohamad Gharib

Mohamad Gharib

Independent Analyst

Mohamad Gharib is a Financial Markets Analyst and Quantitative Researcher with more than 18 years of experience in financial markets, including 15 years as an FX Quant Trader.

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