Gold advanced above 4,200 early but faded and returned to a narrow 4,110–4,200 range. Momentum indicators show weakness, though the metal still holds above its short-term downtrend line.
Gold pushed above the critical 4,200 level early in the session, then gave up the gain quickly. Price pulled back within the narrow 4,110–4,200 range, and 4,200 again acts as resistance.
The pullback has not broken the broader picture yet, however. Gold continues to hold above the short-term downtrend line, even as technical oscillators point the other way.
The RSI is pointing south below the 50 mark, and technical oscillators continue to show signs of weakness.
Further pressure from current levels could push price toward 4,110, the lower boundary of the tight range, ahead of the 4,000 psychological barrier. A rally above the 4,240 resistance level would cancel the negative market structure.
Source: Investing.com
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