Analysis of the daily chart for gold indicates that the price has consistently failed to break through the resistance posed by the 5-day and 10-day moving averages around 4220. This persistent inability suggests the technical bias remains skewed to the downside. For the current session, the primary focus will be on the resistance from these moving averages, which have now shifted lower to the 4195/4210 zone. The downward migration of these averages signals a continued lack of effective upward momentum in gold's technical structure, thereby increasing the risk of a further downward extension in the short term. The immediate support zone to watch remains around 4120/4100. There is a significant probability that this level could be breached this week. A decisive break below could lead the price to test the next major support band between 4050 and 4000, formed by the lower boundary of the daily range and a key trendline.
Examining the one-hour chart, gold opened today's session with renewed selling pressure, retreating to around 4150. This pattern of being prone to declines while struggling to rally clearly illustrates the current market condition: gold fundamentally lacks sustained and effective bullish recovery momentum. The primary trend remains bearish. Consequently, for the intraday analysis, we can slightly lower our expectations for short-term resistance. Immediate resistance is now seen around 4170/75, with the main resistance band at 4190/95. On the downside, initial focus is on the 4120 area, followed by the 4100 level. A breach below these could see the price seek support around the previous low region of 4050/4020.
The market is expected to continue its wide-ranging consolidation during the early Asian session. The overall strategy should remain focused on selling on rallies. On any pullback, consider establishing small, staggered short positions. The key resistance levels are at 4220-4230, with a break above potentially targeting 4250-4260. Key support lies at 4110-4120. A decisive break below this zone would open the path toward testing the 4100 psychological level, which should be used as a defensive reference point.
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