XAU/USD Market Analysis: Gold Outlook Remains Bearish Below $4,055

XAU/USD Technical Market Overview

Gold (XAU/USD) continues to face significant selling pressure as it struggles to maintain its intraday rebound from the $3,960 level. The precious metal remains capped below the $4,055 resistance zone and is currently on track to record its fourth consecutive weekly decline.

Technical Indicators and Trend Analysis

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From a technical perspective, the short-term outlook remains bearish. The price action reflects repeated failures to overcome the 100-period Simple Moving Average (SMA) on the 4-hour chart, and the recent descent below the psychological $4,000 threshold further validates the prevailing negative sentiment.

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Current momentum indicators present a mixed but cautious picture. While the MACD shows signs of moderately positive momentum, the Relative Strength Index (RSI) remains situated below the neutral 50 level. This discrepancy suggests that selling pressure persists and warns against expecting a convincing upside reversal at this stage.

Key Levels and Price Outlook

Market participants should monitor the $4,055 level, which serves as the immediate hurdle for bulls. A successful breakout above this resistance could facilitate a move toward the $4,100 round number, though rallies are likely to attract further selling interest.

Upside potential appears limited, with the 100-period SMA zone near $4,230.57 acting as a formidable ceiling. Failure to consolidate gains above this resistance will ensure that the established short-term bearish trend remains intact.

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