Gold pauses its recovery from seven-month lows of $4,024 in Wednesday’s Asian trading, after facing fresh offers above the $4,100 level. Gold sellers refuse to give up despite the continued hostilities in the Middle East.
In the daily chart, XAU/USD trades at $4,062.56, extending a bearish phase as spot gold holds well below its key moving averages. The 21-day simple moving average (SMA) at $4,444.89 and the 200-day SMA at $4,446.35 form an immediate resistance band overhead, while the 50-day and 100-day SMAs, at $4,593.14 and $4,773.95 respectively, reinforce a broader topside cap and suggest rallies are likely to be sold. The Relative Strength Index (14) at 23.79 sits in oversold territory, hinting that downside momentum is stretched but not yet signaling a clear reversal.
Adding credence to the bearish potential, the 21-day SMA is on the verge of cutting the 200-day SMA from above, indicating an impending Bear Cross.
On the topside, initial resistance is clustered around the 21-day SMA at $4,444.89 and the 200-day SMA at $4,446.35; a daily close above this area would be needed to ease immediate selling pressure and allow a corrective recovery toward the 50-day SMA at $4,593.14. Further up, the 100-day SMA at $4,773.95 stands as a more distant barrier that maintains the broader bearish structure while price trades beneath it, leaving the path of least resistance still pointing lower unless these levels are reclaimed