Technical Analysis: Gold finds support at the 100-day moving average near 4600
Huixun Finance April 6th — Gold prices narrowed their losses just below the uptrend line. Momentum indicators show that bearish pressure has eased, but the overall bearish pattern remains unchanged.
On Monday (April 6th), gold prices stabilized, finding support near the 100-day Simple Moving Average (SMA) at around $4652. After last Friday’s pullback, which was caused by strong U.S. employment data and the renewed escalation of the Iran conflict causing a cooled expectation for Fed rate cuts, the decline has narrowed.
Momentum indicators show that bearish pressure is easing: the MACD indicator has turned upwards above the signal line, but remains below the zero axis; the Relative Strength Index (RSI) is flattening out below the neutral level of 50—this indicates that although selling momentum is cooling off, the overall bearish tone remains.
If gold prices rebound from the support of the 100-day moving average, the upward target will focus on a key resistance at resonance: this is where the medium-term uptrend and the 20-day moving average converge with the 50% Fibonacci retracement of the March 2-23 correction, located around 4558.
If prices can effectively hold above 4850, this could reverse the current downward trend and initiate a rally toward the 50-day moving average near 4944.
(Spot Gold Daily Chart Source: YiHuixun)
Conversely, if gold prices effectively break below the 4600 level, the next support to be tested is the 4550-4375 consolidation range formed in late March, followed by the 200-day moving average near 4150, which is slightly above the psychological level of 4000.
Overall, gold finds some support and is attempting a rebound near 4600, but buying momentum is insufficient, leaving the short-term trend bearish. Although gold has made several attempts to reclaim the uptrend line, it remains under pressure below it. Whether 4550 can be held is key to preventing further intensification of bearish momentum.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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