XAUUSD Analysis

Introduction

XAU/USD represents the price of gold measured against the US Dollar and is one of the most widely followed commodities in the world. Gold is viewed as a safe-haven asset, and its price tends to rise during periods of economic uncertainty, geopolitical risks, or financial crises. The price of gold is inversely correlated with the strength of the US Dollar, as a weaker dollar generally makes gold cheaper for foreign investors. Key drivers of gold prices include inflation expectations, real interest rates, central bank policies (especially the Federal Reserve), and global economic and geopolitical events. Gold is often seen as a hedge against inflation and a store of value during market volatility.

Fundamentals and Interest Rates

The policy is with the current Interest rate 0%. Latest change was 0%.
On that side the Federal Reserve policy is Dovish and (FED) has set its interest rate to 4% by latest change, Oct 29, 2025 (-25bp).
(FED) Higher interest rates generally lead to higher returns on investments denominated in USD. This tends to attract foreign capital into USD assets.

Based on the economic and macro fundamental data, The Fundamental Bias of XAU is Weak Bullish and for the USD is -- Neutral.
Ziwox considering Weak Bullish bias for this asset and we anticipate long-term price increases. and Fundamental Score for USD is -6. So, base on the Fundamental Score, we predict mid-term downside price movement.

Market Overview & Performance

In the current trading session, "Sydney & Tokyo", Market risk sentiment is Strong Risk-OFF. The United States Dollar and British pound recorded the strongest performance, while the Gold and Switzerland Frank are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a -0.73% decrease against us dollar.
Euro "EUR", performance has been -0.3% down so far
Pond "GBP", performance has been -0.05% down as of now
Australian dollar "AUD", has dropped by -0.21%
New Zealand dollar "NZD", has dropped by -0.3%
Japanese YEN "JPY", experienced -0.06% fall
Swiss franc "CHF", experienced -0.36% fall so far
Canadian dollar "CAD", has lost -0.2%
Market risk sentiment is OFF, Investors seek safety, favoring safe-haven currencies and assets while selling off riskier investments.

Market Sentiment and Positioning

XAU COT (Commitments of Traders):

Institutions Net Position on >Gold is 266749 included 332808 long, 66059 short and 339 position changed from last week.
So they mainly have a bullish view on this asset and bought XAU for higher prices in long-term.
Last week 339 repositioning Indicates that they are optimistic about higher prices in mid-term.

USD COT (Commitments of Traders):

Institutions Net Position on >U.S. Dollar Index is -10344 included 14032 long, 24376 short and 2550 position changed from last week.
So they mainly have a bearish view on this asset and sold USD for lower prices in long-term.
Last week 2550 repositioning Indicates closed positions and short-term profit-taking.

Retail Traders:

Crowd traders or Retail traders are bullish on the XAUUSD with 55% 45% ratio. 14490 long pos and 9005 short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability XAUUSD prices may decrease.

Technical Levels and Support/Resistance

The XAUUSD pair is approaching a critical technical support level near 3801.34.
Technical trend is Sell, So If the pair continues to weaken, this support could become a significant area to watch for potential reversal or consolidation.
On the upside, there is key resistance near 4231.37. Technically, If the pair continues to the upside, this resistance level could become a significant area to watch for sell entery potential.