XAU/USD trades at USD 3,926 with a bearish near-term bias as price holds below the 20-day Exponential Moving Average (EMA) around USD 4,064. The Relative Strength Index stood at 36, just above oversold territory, hinting at weak downside pressure.
On the upside, immediate resistance is seen at the 20-day EMA near USD 4,064, and a daily close above this level would be needed to ease the current bearish pressure. On the downside, the yearly low at USD 3,870.23 is the critical support level; a decisive break below the same would expose Gold price to USD 3,800.
“Gold is still in consolidation mode after the price pummelling it took last week,” said Tim Waterer, chief market analyst at KCM Trade.
“Gold continues to be sold as a high-liquidity asset to cover losses and margin calls elsewhere rather than being bought as a traditional safe haven. That characteristic is working against it in the current environment,” he further added.