Gold Faces Downward Pressure as Key Support Levels Tested

Gold prices have been under pressure recently, dropping toward the $4,120 mark and entering a consolidation phase. The precious metal failed to maintain its position above $4,250 and fell further, testing the $4,120 support level. On the 4-hour chart, the price reached a low of $4,110, settling below key moving averages. A recovery attempt faced resistance near the $4,200 level, which is the 23.6% Fib retracement of the downward move from $4,510 to $4,110.

The immediate resistance is seen at $4,260, where a bearish trend line is forming along with the 100 Simple Moving Average. A break above this level could push gold toward the 50% Fib retracement at $4,310. The main resistance lies at the 200 Simple Moving Average, around $4,375, with a successful move above this level potentially targeting $4,500. Conversely, if the decline continues, gold could test $4,080, with further support at $4,050 and $4,000, potentially sliding to $3,850.

In other markets, WTI Crude Oil dipped below $92.50, suggesting possible further losses. Meanwhile, EUR/USD continues to show bearish signs, with potential downside below 1.1275. Key economic events to watch today include speeches by Fed’s Williams and Bowman, which could influence market sentiment.