Gold (XAUUSD) Bulls Lose Momentum

Market Analysis – September 4

Gold prices are currently stalling just above the previous resistance level of 2,483.0, signaling a loss of momentum for further upward movement. This level, now acting as support, has been tested twice without generating any substantial bullish response.

Gold Key Levels

Demand Levels: 2,483.0, 2,406.0, 2,289.0
Supply Levels: 2,500.0, 2,600.0, 2,700.0

Gold Long-Term Trend: Bullish

Gold price recently broke out of a symmetrical triangle pattern, characterized by lower highs and higher lows. This breakout resulted in the formation of a new all-time high at 2,531.0. Following the breakout, the price retraced to test a bullish order block, a zone typically associated with strong buying interest. However, this test failed to push the price into another bullish breakout, leading to a subsequent retest of lower levels.

Although the overall market structure remains bullish, the momentum has clearly weakened. The Momentum indicator confirms the decrease in buying strength, and the Williams Percent Range indicated an overbought condition at the all-time high, which likely contributed to the recent price pullback.

Gold Short-Term Trend: Bearish

On the 4-hour chart, the market has shifted toward a bearish trend. The price decline has temporarily paused at the previous resistance of 2,483.0, which now serves as support. A break below the significant swing low of 2,432.0 would confirm the start of a new downtrend, aligning with forex signals pointing to bearish sentiment in the short term.

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