Gold has slipped below its 100-hour and 200-hour moving averages, which keeps sellers in control. Last week's low at $4,066.21 is the next test, and buyers need to hold it to stabilize the picture.
Gold fell to $4073.49 as the price moved back below both hourly moving averages. Monday's rebound stalled ahead of the swing level near $4,226.81, and the focus has shifted from breaking resistance to defending support.
The current price is $4092, down around $68.83, or 1.65%. Last week's low at $4,066.21 is now within reach.
Buyers fail at the swing ceiling
The $4,226.81 area has been a recurring decision level, with reactions going back to June. It acted as resistance on October 2 and again on Tuesday. Monday's rally fell short of it, which kept the recovery inside the broader decline from the late-August high.
Today's break added to the bearish development. At the chart snapshot, the 200-hour moving average sits at $4,153.42 and the 100-hour at $4,163.43. Price is below both, so the short-term bias favors sellers.
Last week's low is the next downside test
The immediate downside target is $4,066.21. Sellers may take some profit there, while buyers may look to stop the decline. Holding that low would give buyers a foothold, but they would still need to reclaim the hourly averages.
If sellers push below $4,066.21 and stay below, the next support areas are $4,000 to $4,018.79 and $3,942.71 to $3,959.37. Those are conditional targets, and the reaction at each will provide the next clue. A support level does not guarantee a hold on the next test.
What buyers need to reclaim
Buyers first need to stop the decline, then reclaim $4,153.42 to $4,163.43, the area defined by the two hourly averages. A sustained move above both would put the $4,226.81 ceiling back in play, with the 100-day moving average near $4,256.20 as another hurdle.
Until then, a bounce remains a recovery within a bearish setup.
Source: Investinglive
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