Gold Under Pressure as Bear Trendline Keeps Sellers in Control
Gold edged higher on Monday, drawing modest support from fading expectations of a Federal Reserve rate hike in October. However, gains remained limited as the metal struggled to recover from the sharp losses triggered by Friday’s stronger-than-expected U.S. nonfarm payrolls report.
Prices continue to trade near the lower boundary of a short-term consolidation range, holding above a fresh multi-week low marked by the 76.4% Fibonacci retracement of the $3,942 to $4,697 rally. Repeated failures to break above trendline resistance suggest that the broader bearish trend remains firmly in place.
Daily technical indicators remain in a strongly negative configuration, reinforcing the outlook for further downside once the current consolidation phase concludes. A break below the $4,120 Fibonacci support, followed by a move under the psychological $4,100 level, would strengthen bearish signals and open the way toward the key $4,000 support zone.
On the upside, a sustained break above the descending trendline resistance at $4,211 would ease immediate downside pressure. However, bulls would need to clear the top of the consolidation range at $4,225 to generate an initial reversal signal and shift the near-term bias higher.
Res: 4170; 4211; 4225; 4274
Sup: 4120; 4100; 4021; 4000
