In recent days, the gold market has seen noteworthy fluctuations as XAUUSD traded around $4,573 on the hourly chart, recovering from lower levels but struggling to surpass key resistance zones. Analysts suggest that as long as gold remains below the $4,590 threshold, selling pressure could persist in the short term.
Critical thresholds in technical levels
Market observers have highlighted that gold’s drop below last week’s lows has impaired its technical outlook. According to technical analyst CyclesFan, the 200-day moving average sits at $4,283, and recent weakness points to this level as the most crucial target. While gold still trades above this long-term average, the loss of upward momentum is becoming increasingly evident.
Daily charts indicate that gold is struggling to stay near the middle of its Bollinger Band, losing momentum on the downside. Nevertheless, prices remain above the 200-day moving average. The lower edge of the Bollinger Band now marks the primary support zone where prices may find a floor.
CyclesFan notes that “if gold breaks below its 200-day average, it may retest the $4,100 level seen in March, a significant support should the selling continue.”
Trading near the $4,590 resistance
In Mohammad Sami’s view, gold prices are still trending down on both hourly and four-hour charts. His analysis places resistance at $4,590, with the price moving inside a rising channel forming a wedge. Sami identifies initial targets for a pullback at $4,510, $4,480, and $4,450. Should gold achieve a lasting break above $4,590 on a four-hour close, it could negate the downward trend outlook.
In the latest trades, gold fetched $4,573.36, marking a 1.10% increase. The price established $4,541.86 as a nearby support level. Analysts warn that if buying interest wanes, gold could quickly test this level, making it a critical point in the coming sessions.
According to Mohammad Sami, “expectations for a rebound cannot strengthen until we observe another close above $4,590 on hourly and four-hour charts; the market remains under pressure.”
Broader corrective structure
Analyst Sensei Tutum assesses that gold is still within an incomplete corrective pattern. He believes the current uptick is a short-term recovery within a broader structure and anticipates the price will test higher resistance before possibly retreating again.
Sensei Tutum adds that this recent recovery may be short-lived, and another downward movement could follow before a strong new trend emerges. This scenario aligns with other analyses that point to prevailing bearish tendencies in both short- and medium-term charts.
Sensei Tutum explains, “We may see temporary upward moves, but the overall corrective structure is not yet complete. Price movements need to be closely watched to determine long-term support and resistance.”
The consensus among analysts is that gold must close decisively above $4,590 to confirm a lasting rebound. Meanwhile, $4,510, $4,480, and $4,450 remain key support areas, with the main long-term support at $4,283.
