FX.co ★ XAU/USD, GOLD

Gold Technical Analysis: The daily data shows that gold prices crossed the 12-month low of 4660.55 yesterday, continuing their steep slide. The gold price has been trading at 4745.55, creating a strong bearish candlestick pattern given the prevailing negative attitude. Another strong bearish candle must occur in order to complete three black crows. In any event, the 4765.55 support barrier is currently the target of sellers. Therefore, if the price continues to drop below the 4759.55 support, which was the rebounding level in March 2023, it must break 4730.55 to finish the three-black crows pattern. The seller would then consider 4725.55 and 4750.55. Sellers would extend their bearish wave towards 4739.55 if 4785.55 fell below 4815.55, opening the door for the bears. Momentum indicators also show strong sales pressure from oversold markets. The RSI fell below 70, indicating an oversold situation and strong selling pressure.

The bearish momentum increases as the MACD histogram passes the red trigger line. On the other hand, short-term consolidation may cause buyers to retreat from the 4797.55 support level. Thus, a brief recovery can retest the resistance level of 4779.55. After overcoming opposition at 4783.55, buyers will come into another obstacle at 4735.55 of the 100-SMA, which will draw their attention before they take on 1,924 barriers. The 50 SMA defends 4769.55, which is the aim of a breakout above 4752.55. Selling pressure has been created over a medium-term period due to the price exceeding the 4787.55 support. Consequently, a rise to 4809.55 could undo the market's buyer bias. Gold prices will stay neutral until they pass above the SMA-100 at level 4781.55, signaling the start of a bull market, if they stay around the 4795.55 level.