Gold Struggles for Direction as Technical Barriers Hold After Volatile Weekend

Gold markets opened Monday with prices near $3,290 per ounce, reflecting a cautious start after a turbulent weekend. Official price data from TradingView charts shows gold rebounded from lows near $3,264, but the metal faces persistent resistance.

The 4-hour chart reveals that gold trades below the 50-period and 200-period moving averages, with the price also sitting beneath the Ichimoku cloud. The 9-period moving average has crossed into the price from above, signaling a short-term downtrend.

The MACD remains negative, with the signal line above the MACD line, and the histogram shows only a slight reduction in bearish momentum. The RSI stands at 38.92, indicating that gold is approaching oversold conditions but has not yet signaled a clear reversal.

The daily chart offers a broader perspective. Gold remains supported by the long-term uptrend, with the 200-day moving average far below current prices. However, the metal has failed to reclaim the 50-day moving average at $3,320, which acts as a ceiling.

The price sits just above the upper edge of the Ichimoku cloud, suggesting some underlying support. The MACD on the daily chart remains negative, with a subdued histogram and the signal line above the MACD line.

The RSI at 44.23 shows weak momentum, and the market lacks conviction. Bollinger Bands on both timeframes have narrowed, pointing to reduced volatility and hinting at potential for a breakout, but direction remains unclear.

Volumes have not shown any significant spikes, confirming that recent price moves lack strong conviction from market participants.

ETF flows, according to official monthly data, have turned negative for the first time since November, reflecting cautious investor sentiment and a preference for riskier assets.

Gold Prices Remain Cautious Amid Eased Geopolitical Tensions

Geopolitical tensions eased over the weekend, with no new escalations reported, which reduced safe-haven demand. At the same time, the US dollar softened slightly, offering some support to gold prices, but not enough to break through key resistance levels.

Macroeconomic data released late last week showed weaker US personal spending and income, and inflation remains above target. These factors have not prompted a decisive move from the Federal Reserve, leaving markets uncertain about the timing of any rate cut.

Traders remain wary, with most waiting for a clear catalyst before committing to new positions. Gold’s technical outlook remains fragile. The 4-hour chart signals a need for significant buying to overcome the 9-period moving average and reclaim higher ground.

The daily chart shows that the 50-day moving average at $3,320 is the key level to watch. Without a close above this threshold, gold is likely to consolidate or drift lower.

The market’s next move will depend on whether buyers can muster enough strength to push prices higher or if sellers will drive another leg down.

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