Gold is under pressure for a third consecutive session, as downside momentum builds following last week’s false breakout from a bullish pennant formation. The metal is currently testing the $3,300 level, with risk sentiment improving amid hopes of progress in the US-China trade talks set for later today in London.
Momentum Indicators Signal Weakness
Stochastics are declining sharply, but not yet in oversold territory.
RSI is flatlining slightly above 50, reflecting a neutral-to-bearish bias.
This suggests waning bullish momentum without a clear breakdown—yet.
Key Support Levels to Watch
Immediate support: 20-day Simple Moving Average (SMA), sitting just below $3,300.
Next support: Confluence of the 50-day SMA and the 38.2% Fibonacci retracement of the April–May correction at $3,265.54.
Further support sits at the 23.6% Fibonacci retracement at $3,210.18, with the May low of $3,120.68 acting as a key bearish trigger level.
Upside Hurdles
If gold finds support at the 20-day SMA and rebounds, it will face resistance at:
$3,355, near the 61.8% Fibonacci retracement.
Then the May peak at $3,437.76.
A decisive break above $3,500 would reconfirm the long-term bullish trend.
Outlook
Gold is at a technical crossroads. A break below the 20-day SMA could initiate a deeper corrective phase toward $3,120. Conversely, a successful rebound and close above $3,500 would reinstate the broader bullish narrative.
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