Gold Prices Plummet Below Key Technical Indicators
Gold prices have been on a downward trend since hitting a high of $4,755. The recent decline has broken through both weekly and daily volatility convergence (VC) price mean indicators, shifting the immediate technical structure from bullish to bearish.
The critical equilibrium levels are at $4,593 for the weekly VC PMI and approximately $4,571 for the daily VC PMI. With gold trading below these means, sellers control short-term momentum, and the market has entered a lower VC PMI probability zone.
As a result, the immediate downside objective is the Daily Buy 1 level at $4,454, followed closely by the Weekly Buy 1 at $4,432. This cluster represents the most important support zone, with the next downside objectives being the Daily Buy 2 at $4,378 and Weekly Buy 2 at $4,333.
On the other hand, a recovery above $4,571-$4,593 would indicate that today's decline is an exhaustion event rather than the beginning of a larger bearish trend. Upside resistance stands at Daily Sell 1 $4,647, Weekly Sell 1 $4,692, Daily Sell 2 $4,764, and Weekly Sell 2 $4,853.