Based on multiple technical indicators, gold appears to be exhibiting bearish momentum in the 4-hour timeframe. The short-term Simple Moving Average (SMA) has crossed below the long-term SMA, which is often interpreted as a sell signal by traders. The Relative Strength Index (RSI) is significantly below the 30 level, currently at 16.14, suggesting that gold might be in oversold territory. Further validation of this bearish sentiment is the RSI-based moving average reading of 25.37. The Moving Average Convergence Divergence (MACD) provides another bearish indication: the MACD line has crossed below the signal line, and its histogram records a decline at -3.30. While these indicators point to short-term selling pressure, the oversold RSI may hint at potential price recovery or consolidation in the near future.
• There is a resistance level at 1914.00; followed by resistance at 1886.00 and 1879.50.
• There is a support level at 1864.00. Below, there are 1857.00 and 1830.50.
Note: We do not suggest any investment advice, and these analyses are just to increase the traders’ awareness but not a certain instruction for trading.
September 28, 2023