Gold is trading at $4,331.90, just above the $4,320 support level that has already been tested twice. Momentum indicators point lower, but a rising Money Flow Index hints some traders see a bounce coming.
Gold changed hands at $4,331.90 on its 5-hour chart, hovering just above the $4,320 level that has held twice already. A break below that line would open the door to the 61.8% Fibonacci retracement at $4,260.85, the next zone traders are watching.
Momentum still points down
The MACD reads -32.19 against a signal line of -29.20 and is accelerating lower, confirming the downtrend. Price also sits below the 20-period and 50-period moving averages, at $4,382.95 and $4,421.82 respectively. It remains under the Ichimoku cloud, which spans $4,371.88 to $4,418.35.
Two chart patterns reinforce the bearish case. A head and shoulders pattern completed at $4,500, a classic reversal signal. A bearish engulfing candle appeared at $4,403.80 on Sep 11, 2026.
Bears eye a break, bulls bet on divergence
For traders positioned short, a close below $4,320 or a failed bounce near $4,380 marks the entry, with a stop at $4,425 and targets stretching to $4,260, $4,150, and $3,955. That setup carries a risk-reward ratio of 2.66 at the first target.
Bulls have a narrower case. The Money Flow Index is rising to 68.60 even as price tests support, a bullish divergence that sometimes precedes a rebound. A long entry near $4,335 or on a confirmed reversal above $4,390 would carry a stop at $4,275 and targets as high as $4,600, though confidence in that scenario is rated low given the structural downtrend.
The zone between $4,320 and $4,380 is flagged as a no-trade area, likely to whipsaw both sides before the market picks a direction.
Source: Investing.com
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