Gold prices extended losses on Tuesday, breaking below a critical support zone and reinforcing short-term bearish signals after a five-day consolidation between $4,310 and $4,449. The metal reversed gains from Monday, resuming a pattern of alternating daily declines and modest rebounds within the sideways trend.
Technical levels shifted after gold breached support at $4,355/$4,345, with the analysis flagging a potential short entry around $4,355/$4,365. Traders were advised to place stop-losses above $4,375 to limit downside risk. Downside targets were set at $4,335/$4,330 and $4,100/$4,050 for profit-taking on short positions.
A recovery above current levels would retest the 100-day moving average at $4,385/$4,390, followed by a possible re-test of recent highs near $4,420/$4,430. However, a decisive break below $4,305 would complete a short-term double-top formation, potentially accelerating losses toward $4,220/$4,210 in subsequent sessions.
Silver mirrored gold’s technical posture, consolidating near $29.50/$29.60 as market participants awaited U.S. economic data for fresh directional cues. The analysis noted that late August typically sees subdued trading activity, which may prolong the current range-bound behavior in both metals.
Video commentary accompanying the report highlighted the evolving technical setup and outlined risk management strategies for positioning around the identified support and resistance levels.
