XAUUSD midweek: gold down $71 testing 4500 support, 2026-05-25

Where XAUUSD stands midweek

Gold closed Wednesday at $4495.72, down $71.05 or 1.6% from Monday's open of $4566.77. The metal hit a weekly high of $4580.03 on Monday before sliding to a low of $4482.51 on Tuesday.

What has driven price so far

Tuesday's sharp drop saw gold lose $40 in a single session as Goldman Sachs raised their S&P 500 year-end target to 8,000. The bullish equity outlook triggered rotation out of safe havens, with volume spiking to 173,550 contracts compared to Monday's 120,005.

What's still ahead

The remainder of this week shows no high-impact economic releases on the calendar. Without scheduled catalysts, gold will likely continue reacting to equity market sentiment. If stocks extend gains Thursday or Friday, the $4480 Tuesday low comes back into focus. If risk appetite reverses, $4525 resistance from Wednesday's high becomes the first test.

Positioning right now

Current positioning shows 55.3% of traders long and 44.7% short as of Wednesday morning. The modest long skew suggests traders are not panicking despite this week's decline, keeping dry powder for either a bounce from support or further weakness below $4480.

The level that matters today

Gold is testing the psychological $4500 level after bouncing from Tuesday's $4482.51 low. If price holds above $4490 through Thursday's session, buyers may attempt to reclaim $4520. A break below $4480 would confirm the bearish momentum and open the door for further selling. Trade gold's reaction to these key levels with LHFX's tight spreads and fast execution.

Byline: LHFX Research

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