FX.co ★ XAU/USD, GOLD

GOLD Timeframe H1: Based on the GOLD chart on the H1 timeframe, the current price movement shows quite interesting dynamics due to a change in momentum after previously being in a relatively stable uptrend. Overall, the price structure since early April still reflects a bullish trend, as evidenced by a gradual upward movement that forms higher highs and higher lows. However, selling pressure emerging at the end of the chart indicates that the market is entering a correction phase, or at least consolidation, after reaching the nearest peak. From a Moving Average perspective, the 100-day moving average (MA), marked by the blue line, remains above the 200-day moving average (MA), and both have upward slopes. This confirms that the medium- to long-term trend remains bullish. However, the current price position, hovering around and even briefly breaking below the 100-day moving average (MA), indicates that bullish momentum is weakening in the short term. The price reaction to the 100-day moving average (MA) is crucial because this indicator serves as the first dynamic support in an uptrend. If the price fails to regain ground above the 100-day moving average (MA), the potential for further weakness increases. Meanwhile, the lower 200-day moving average (MA) continues to move steadily upward, indicating that the long-term trend has not experienced any significant disruption. The area around the 200-day moving average (MA) is now a crucial zone that can determine whether the bullish structure remains intact or begins to shift from neutral to bearish. The price decline, which briefly touched the area near the 200-day moving average (MA), but then rebounded, indicates that buying interest remains in the area, although not yet strong enough to push the price back to its previous high.

In terms of horizontal support and resistance, the area around 4889 to 4858 represents strong resistance that was recently tested. The price briefly broke through this area, but was unable to maintain its resistance for long and ultimately experienced a sharp rejection. This indicates significant selling pressure in the area, likely stemming from profit-taking or the entry of new sellers. Regarding support, the 4810 to 4790 levels are a key zone currently being tested by the price. This area is close to the 100-day moving average (MA), thus serving a dual role as horizontal and dynamic support. If the price can hold above this zone, there is still a chance for a rebound, with the target of retesting the upper resistance. However, if a valid breakout occurs to the downside, the price has the potential to continue its decline towards the next support in the range of 4751 to 4738, which is also an area close to the 200-day moving average (MA). Further down, strong support exists around 4699 to 4644, which previously served as the basis for the price rally. If the price falls to this area, the medium-term bullish structure will come under serious pressure, and the likelihood of a trend reversal will increase. Overall, although the primary trend remains bullish based on the 100- and 200-day moving averages (MAs), current conditions indicate a significant weakening of momentum in the short term. The market appears to be seeking a new equilibrium after the previous rally, and the price reaction at the nearest support area will be key in determining the next direction. If buyers are able to hold this area, the uptrend could potentially continue; if not, a deeper correction is highly likely.