Gold is extending its slide inside a descending channel, tracking the pullback from August's highs and slipping below its short-term uptrend line and the $4,200 level. The move raises the risk of a deeper retracement, and technical charts point to $4,100 as the next downside target if selling pressure continues.
Gold breaks below its uptrend line
Gold has slipped below its short-term uptrend line and the $4,200 mark, extending a decline that has tracked the pullback from August's highs. The metal is now trading inside a descending channel, and its position below key moving averages keeps the near-term bias tilted to the downside.
The MACD and RSI both reflect weakening momentum, supporting the downside bias.
Bears target the $4,100 trendline
From around $4,165, further weakness could expose the long-term ascending trendline near $4,100. A break below that level could open the door toward $4,000 and the June low at $3,940.
What would stop the slide
A recovery above the 61.8% Fibonacci retracement near $4,230 could stem the current decline.
Source: Investing.com
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