Selling Pressure Drives Gold Prices Downward
Gold futures on the COMEX exchange extended their consolidation trend this week, declining by USD15.30 to close at USD4,808.30, as prices continued to struggle below the critical USD5,000 resistance level.
The precious metal opened at USD4,813.60 and traded within a relatively narrow range, hitting an intraday high of USD4,861.30 and a low of USD4,792.10 before settling lower by the close.
Analysts noted that the latest price action reflects persistent selling pressure, with bulls failing to push prices toward the USD5,000 mark. The 50-day simple moving average (SMA) continues to cap upward momentum, reinforcing a short-term bearish outlook.
Market sentiment suggests that sellers remain in control, with gold expected to consolidate further and potentially retest the USD4,600 support level in the near term.
A decisive break above the USD5,000 threshold would signal a bullish breakout and could trigger renewed upward momentum. However, until such a move materialises, the prevailing bias remains skewed to the downside.
For now, analysts maintain a cautious stance, highlighting that gold’s inability to break higher indicates continued consolidation and potential downside risk in the sessions ahead.
