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Gold prices are under pressure as the metal trades below key moving averages on both hourly and daily charts. Current levels sit around $4,170, down from a session high of $4,221, with the 200-hour moving average at $4,231.55 and the 200-day moving average at $4,443.34 acting as resistance. Rising U.S. Treasury yields and a stronger dollar are exacerbating the bearish technical setup.
The breakdown below the 200-day moving average marks the first such decline since October 2023, signaling a significant shift in long-term momentum. Traders are closely watching the $4,120 support level from Friday's low and the $4,350-$4,375 resistance zone as potential turning points. A sustained move above the moving averages could attract buyers, while a break below $4,120 might accelerate the decline toward $4,024.
For Gulf investors, the technical deterioration in gold's chart pattern suggests caution. The recent loss of key moving averages as support highlights the dominance of sellers. Traders should monitor U.S. dollar strength, Federal Reserve policy signals, and gold's interaction with the $4,120 level for potential reversal cues.
