Bearish Bias Holds Below $4850

Today’s Gold Analysis Overview:

  • The Overall Gold Trend: Bearish.

  • Today’s Gold Support Points: $4690 – $4630 – $4570 per ounce.

  • Today’s Gold Resistance Points: $4780 – $4830 – $4885 per ounce.

Today’s Gold Trading Signals:

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Note: These recommendations are suitable for medium-to-long-term traders, provided there is strict adherence to capital and risk management

Daily Technical Analysis of Gold/US Dollar (XAU/USD):

In Wednesday’s morning sessions, gold prices rebounded upward, stabilizing around the $4771 per ounce level. This performance marks a recovery from yesterday’s profit-taking sell-offs, where the yellow metal plummeted from the $4833 resistance to the $4668 support level.

Yesterday’s losses across gold trading platforms pushed prices below neutral lines, supporting sellers in driving the trend toward bearish levels. Based on performance over recent months, gold and silver prices appear vulnerable to further declines. Both metals are moving similarly to their patterns earlier this year – a positive trend followed by a rapid collapse.

In early March, gold futures prices began falling from $5300 per ounce to a low of under $4400 by the end of the month. Silver saw similar, though broader, movements. While both metals have since recovered, they may face another significant reversal.

The bearish scenario for gold gains momentum if the “bears” push below the support levels of $4660 and $4600 respectively. Gold is moving within a negatively biased range after the Relative Strength Index (RSI) dropped below 50, signaling weak buying momentum. Meanwhile, the MACD indicator is approaching a bearish crossover, which could enhance the chances of a continued decline toward the next support levels at $4690, $4630, and eventually the critical support at $4570.

Conversely, the $4850 resistance barrier remains essential for the “bulls” to break out of the current bearish bias. Recently, gold futures rose by more than 1% as oil prices fell following the U.S. extension of a ceasefire with Iran, which eased inflation concerns. Until a peace agreement becomes clearer, the trend for both gold and silver will likely compete with the Dollar to determine their direction, keeping prices range-bound for the time being.

Summary

The gold index remains under pressure as long as prices stay below $4850, with negative momentum continuing on momentum indicators.

Trading Advice

Wait for a strong upward rebound in gold prices before considering short positions. Do not take risks, no matter how strong the trading opportunities may seem, and be cautious, as volatility will persist for some time.

Ready to trade our Gold price forecast? We’ve made a list of the best Gold trading platforms worth trading with.

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