Gold weakens further on unstable geopolitical backdrop
Gold Stays Under Pressure Amid Uncertain Geopolitical Outlook
Gold extended its losses for a second consecutive session on Wednesday, hovering near the bottom of a seven-day trading range around $4453 while slipping deeper into the lower boundary of a short-term bearish channel formed after the mid-April peak at $4889.
The precious metal continues to face headwinds as fading expectations for a Middle East peace agreement reignite inflation fears and reinforce expectations of a more hawkish interest-rate environment.
Technical indicators on the daily chart remain negative, with gold trading below the daily Ichimoku cloud for nearly two weeks. Momentum signals continue to weaken, while daily moving averages remain aligned in a bearish configuration, pointing to elevated downside risks.
A sustained break below the critical $4500 support area — which has repeatedly held in recent sessions — would likely confirm a continuation of the bearish trend and expose the next downside targets at $4401, the 61.8% Fibonacci retracement of the $4099-$4889 rally. Additional support levels are seen at $4388, where the 200-day moving average stands, and $4367 near the lower line of the bearish channel. A move below these levels could accelerate the near-term decline.
Resistance levels: $4494, $4535, $4585, $4594
Support levels: $4401, $4388, $4367, $4300
