Technical Analysis: Gold Remains in a Weak Consolidation, Watch 100-day Moving Average Resistance, Downside Risks Persist
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1. The current gold price remains below the 100-day moving average (around 4630), with the overall trend appearing weak. The range-bound trading of the past week or so can be seen as a bearish consolidation phase following the recent break below the 100-day simple moving average.2. However, last week the gold price saw a strong rebound from the 200-day moving average, a key support level, reminding investors to remain cautious before establishing new bearish positions.3. In terms of technical indicators, the MACD line remains below the signal line and is in negative territory, with the histogram staying negative, indicating continued downside momentum. The Relative Strength Index (RSI) has recovered from the oversold area and is currently hovering around the mid-40s, suggesting that bearish pressure has eased somewhat, but no reversal signal has emerged yet.4. On the upside, immediate resistance lies near the 100-day moving average, around $4,630. Only a clear break above this level would further open up room for gains, with the next resistance at $4,880.5. On the downside, initial support is near the recent low, around $4,380, where previous selling pressure temporarily subsided. If the bears gain further control, the next support area is at $4,300.
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