Gold remains confined within a narrow trading range after Tuesday’s retreat found support at the lower boundary of its consolidation pattern and the 23.6% Fibonacci retracement level at $4,330. The 20- and 50-day simple moving averages continue to exhibit a bullish crossover, reinforcing the metal’s underlying upward bias.
Technical momentum has moderated, though indicators remain constructive. The relative strength index stays in bullish territory, while the moving average convergence divergence remains above its zero line, indicating potential for further gains. The analysis suggests that a sustained move above the 100-day SMA at $4,385 could increase the likelihood of a breakout above the trendline resistance at $4,455 and a subsequent test of the 200-day SMA near $4,500. A decisive move above $4,574 could accelerate bullish momentum.
Downside risks persist. The analysis warns that a breakdown below $4,300 may trigger additional selling pressure.
