The daily chart for XAU/USD shows that it holds on to modest daily gains despite shedding $20 from its intraday top. The risk remains skewed to the upside according to technical readings, as gold remains above all of its moving averages, with the 20 Simple Moving Average (SMA) maintaining its bullish slope above the longer ones. At the same time, the Momentum indicator turned north within positive levels, while the Relative Strength Index (RSI) advances at around 62, reflecting the dominant upward trend.
The near-term picture suggests XAU/USD could keep declining but also that the bullish trend remains firmly in place. Despite the sharp pullback, the metal remains above bullish moving averages, with the 20 SMA providing dynamic support at around $1,819.30. Technical indicators are retreating sharply from overbought readings but still holding within positive levels and far from their midlines. A break through the mentioned 20 SMA could lead to a steeper decline, but buyers will likely take their chances at around $1,800.
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