As gold continues to decline, its overall center of gravity shifts downwards, and the short-selling levels we previously suggested are likely to be reached. However, our strategy of not going long on gold today was wise.
We can see that gold prices have been weakening since the Asian session high, forming several long bearish candlesticks and gradually breaking through key levels such as 4630 and 4600. These levels have now turned into resistance, and the short-term trend for gold is entirely dominated by bears.
The moving average system is in a bearish alignment, with prices consistently under pressure below the 5/10/20-day moving averages, indicating significant downward pressure. Furthermore, we can see that the intraday rebounds were weak, with each small rebound accompanied by selling pressure, a typical sign of a weak downward trend.
Short-term resistance is at 4590-4600, which is our short-selling area for gold. A touch of this level would present an opportunity.