On the 4-hour chart, gold is currently trading around $4,439, down from the $4,630 – $4,700 zone. As expected, gold has broken the 23.6% Fib level at $4,452, and is still below the 50-EMA at $4,554 and the 100-EMA at $4,539, therefore confirming a bearish short-term structure. Thankfully, the latest gold candles are closing above the $4,396 support area and are aligning with a region of previous fair-value gap zone and an upward trend line.
The RSI at 32 shows that there is an oversold condition and an increasing probability for a corrective rally. Immediate resistance is at $4,452 and beyond that is $4,487, $4,515, $4,543 and $4,570. Support remains at $4,396 with even stronger support at $4,341.
Being below $4,452 – $4,487 keeps the outlook for gold bullish, but the oversold RSI makes $4,396 even more important. A break below $4,396 would open $4,341.