Gold approaches critical support levels amid bearish signals

LONDON: Gold prices are approaching a critical technical zone that analysts say could determine whether the precious metal extends its losses or stages a recovery. Gold came under pressure earlier this year after a sharp rally was followed by a steep decline on January 30, forming what technical analysts describe as a “blow-off top” — a pattern often associated with the end of a strong upward trend. Since then, repeated recovery attempts have failed to sustain momentum, with gold forming lower highs, a signal commonly viewed as bearish in technical trading. According to LSEG data, gold is now trading near its 200-day moving average at around $4,394. Analysts consider the 200-day moving average an important indicator for identifying longer-term market trends by smoothing out short-term price fluctuations. The importance of the current level is reinforced by its proximity to October’s peak near $4,381.21 and the lower Bollinger band around $4,417, both closely watched technical markers. Analysts say a clear break below this support area could increase expectations of a decline toward March’s low of $4,097.99 or lower. However, technical indicators also suggest continued competition between buyers and sellers around current price levels. A move above this month’s high of $4,773.14 could ease concerns about further downside pressure and potentially support a broader recovery in gold prices. The post Gold approaches critical support levels amid bearish signals appeared first on HUM News English.