Bearish Moving Average Compression Zone
The 50-day average has now crossed below the 100-day average, adding further significance to that resistance area. Since the 50-day moving average was specifically reached during the last advance before sellers took back control, it is reasonable to anticipate that sellers may again respond near that zone. Currently, the 50-day line is at $4,769 and the 100-day moving average is at $4,782.
Broader Trend Still Intact but Under Pressure
Gold remains in a clear corrective decline within a long-term bull trend. The bearish correction is anticipated to continue unless stronger bullish evidence develops. That would occur on a decisive and sustained reclaim of the 100-day moving average, followed by a bullish reversal signal above the recent lower swing high at $4,890.
Continuation or Reversal at Key Price Thresholds
A continuation of the correction becomes more likely on a decisive decline below Friday’s low of $4,674, as that would generate a lower swing high and signal a continuation of the larger bearish correction. Although technically such a reversal was signaled on Friday, follow-through selling pressure remained limited, leaving gold at the same key inflection point discussed at the beginning of this analysis.
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