The recent unsuccessful attempt to find support above the $4,250 level and the subsequent decline favor the bears. However, positive technical oscillators on the daily chart indicate that any downturn will find strong support near the weekly low set on Tuesday around $4,160. But further selling below this level will push prices toward the round level of $4,100 on the way to $4,075. This level is close to the 50-day SMA, which may become a base in the near future.
On the other hand, since gold has already surpassed the round $4,200 level today, resistance at $4,250 may still serve as a strong barrier before $4,270, above which the precious metal will attempt to reclaim the round $4,300 level. A sustained break above this last mark will be a key factor for the growth of XAU/USD, opening the path to further upward movement in the short term.
