FX.co ★ FX-Perfact | XAU/USD, GOLD

GOLD Timeframe H1: Gold's movement on the H1 timeframe indicates that the market is in a recovery phase after experiencing quite aggressive bearish pressure since mid-May. Previously, the price moved steadily in the upper area and formed a consolidation pattern around 4693 to 4717 before finally experiencing a sharp breakdown that pushed the price down to the support area of 4523. This decline occurred with very strong momentum, as evidenced by a series of long bearish candles that penetrated the minor support area without much resistance. This condition indicates significant seller dominance in the short term. In terms of Moving Averages, the 100-day moving average (MA), indicated by the blue line, has crossed below the 200-day moving average (MA), indicated by the red line. This structure is a bearish technical signal, indicating that short-term momentum is weakening compared to the medium-term trend. Furthermore, both moving averages are currently trending downward, indicating that selling pressure continues to dominate the overall market. The price's position below the 100-day and 200-day moving averages reinforces the indication that the main trend on the H1 timeframe remains bearish despite the current technical rebound. The price is currently hovering around the 4571 area, which serves as the nearest minor resistance. This zone previously served as support before a major breakdown, but has now transformed into dynamic resistance. As long as the price fails to break through and maintain above this level, any recovery is still considered a correction within a downtrend. If buyers are able to consistently push the price above the 4571 area, there is a chance for an increase towards the next resistance at 4620. The 4620 area is also close to the 100-day moving average (MA), making it a key zone that could potentially trigger renewed selling pressure if the price fails to break out.

Stronger resistance is seen at 4665.77 and 4717.92. These two areas were key distribution points before the major decline began. If gold manages to rise back above these areas, the market will enter a zone of heavy supply, as many market participants are likely waiting to sell again. Even if bullish momentum continues to develop, the major resistance at 4765 to 4773 remains a psychologically challenging area to break without the support of very strong fundamental sentiment. On the downside, key support is located at 4523.09. This level is crucial because it halted the previous sharp decline and triggered the current technical rebound. As long as the price remains above this support, there is still a chance for a short-term recovery. However, if selling pressure intensifies and the price breaks through the 4523 area, GOLD could potentially continue its decline towards the next support level around 4479.94. A break below this level would strengthen the bearish structure and open the possibility of a deeper decline in the medium term. The candlestick pattern formed at the end of the chart shows buyers attempting to slowly lift the price after selling pressure began to subside. The emerging bullish candlestick is more stable than the previous one, indicating that the market is beginning to find a new equilibrium. However, this rebound is still not strong enough to reverse the trend, as the price has not been able to return above the 100-day moving average (MA) or 200-day moving average (MA). Until this occurs, the downtrend remains technically dominant. The moving averages, which are beginning to widen downwards, also indicate significant previous bearish volatility. Typically, such situations require a period of consolidation for the market before determining its next direction. Therefore, the short-term movement of GOLD will likely continue to be characterized by two-way fluctuations, with a tendency for a limited rebound as long as there is no valid breakout above key resistance. Overall, GOLD's technical analysis on the H1 timeframe still indicates a bearish trend despite the short-term recovery. The 100- and 200-day moving averages (MAs) are both declining, signaling that selling pressure continues to dominate the market. The 4571 to 4620 area serves as a key resistance area that will determine whether the rebound can develop into a larger reversal or trigger further selling pressure. Meanwhile, the 4523 support level remains a crucial barrier that buyers must defend to prevent the price from entering a deeper downward phase.