Gold Struggles to Recover Amid Negative Divergence

The gold price is struggling to recover from its previous losses due to persistent negative pressure. The price is currently trading alongside a supportive trend line, but it remains below the EMA50, which acts as dynamic resistance and limits the chances of a full recovery in the near term.

A negative divergence is forming on the relative strength indicators after they reached extremely overbought levels, accompanied by negative signals from these indicators. This reflects weakening bullish momentum and increases the likelihood of further declines in the near term.