FxNews – In today’s gold technical analysis, we delve into the XAUUSD chart, focusing on the 4-hour timeframe. During the previous trading session, gold experienced a notable decline from the $2,000 resistance level, forming a bearish candlestick pattern. This psychological level is currently preventing the bulls from driving the XAUUSD price higher and serves as a crucial barrier, keeping the price below $2,000.
Gold Technical Analysis and the Bearish Signal
At the time of writing, gold is trading within a bullish flag pattern, and the 23.6% Fibonacci retracement level is providing additional support, helping to maintain the market within the range of $1,990 to $2,000.
If the bears close and keep the price below $1,990, it could signal a continuation of the decline that started on November 21. In this scenario, the initial bearish target might be the 38.2% Fibonacci level, followed by the $1,970 resistance.