Gold prices are declining for the second consecutive day from record highs after volatility triggered by the Fed's actions.
For the second day in a row, gold prices are retreating from record highs after volatility sparked by the Fed's moves. The metal broke below $3658 and the 50-period Simple Moving Average (SMA) on the 4-hour chart, shifting momentum to the downside. This opens the way toward the psychological level of $3600, with stronger support seen in the $3565–3578 level, where the 100-SMA on the 4-hour chart is located.
The $3658 level, together with the 50-period SMA, now acts as resistance, capping any rebound attempts from current levels. A breakout above this zone would pave the way for another test of the $3700–$3707 level. A decisive move beyond the record high would trigger continuation of the bullish trend.
The Relative Strength Index (RSI) remains in negative territory on the 4-hour chart, reinforcing the bearish momentum. If gold fails to recover above $3658, near-term risks remain skewed to further downside. However, it is worth noting that this is a short-term development, as oscillators on the daily chart remain in positive territory, retreating from overbought conditions, which keeps the broader outlook for gold tilted to the upside.
