Gold Breaks Support Level – The Downtrend May Not Stop

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After peaking at $3,500/ounce in April, gold is in a clear correction phase. On the H4 chart, the price has broken through both the EMA34 and EMA89, indicating that a short-term downtrend has been established. The most recent session closed at $3,223, losing nearly $130 in just a few sessions.

The sharp decline appeared after a long rally and the peak was rejected many times. The break through the EMA89 support has triggered technical selling pressure, reflecting the psychology of profit-taking after failing to surpass the old peak.

Penafian

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