XAU/USD Technical Analysis: Bearish Bias Persists Below 200-Day SMA

XAU/USD Technical Overview

Gold continues to exhibit a short-term bearish bias, trading consistently below the 200-day Simple Moving Average (SMA). While recent market activity shows a minor recovery, current price action appears to be driven primarily by short-covering rather than a fundamental shift in trend.

Indicators and Momentum

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Technical indicators reinforce the prevailing downward pressure. The MACD histogram remains firmly in negative territory below the signal line, confirming a lack of bullish momentum.

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Furthermore, the Relative Strength Index (RSI) is hovering near the 30 level. This position at the edge of the oversold threshold highlights sustained selling interest, suggesting that the recent recovery lacks the strength to reverse the primary trend.

Key Resistance and Support Levels

The immediate resistance zone for XAU/USD is identified between $4,230 and $4,260. Traders should also monitor the $4,300 psychological level, which coincides with the 200-day EMA and SMA, serving as a critical barrier for potential upside moves.

On the downside, support remains anchored at the recent low of $4,015. A decisive break below this support level would likely signal the commencement of a more significant corrective decline in gold prices.

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