2026-10-23 Readings lean bearish
Gold (XAU/USD) tests $4,000 support as heavy selling meets rising client demand
Gold has faced significant selling pressure, dropping below $4,100 and testing the psychological $4,000 mark. The decline is driven by elevated oil prices fueling inflation concerns and reducing the likelihood of accelerated Fed rate cuts. Despite the drop, retail client positioning suggests some traders are anticipating a potential reversal.
Trend and momentum
The 4-hour trend structure is down, while the 1-hour structure is ranging. Momentum indicators show weakness, with the 4-hour RSI at 20.91 indicating oversold conditions, though the 1-hour RSI is slightly higher at 38.17. The 1-hour MACD has formed a bullish cross, and the Bollinger Bands are inside with no squeeze. The pair has used 68% of its average daily range today.
Key levels
Key levels to watch include yesterday's high at 4140.07 and yesterday's low at 4021.16, which the price has already broken below. The recent 4-hour range spans from a high of 4199.08 to a low of 3986.73. A sustained break below the 4-hour low of 3986.73 could open the door for further downside, while a move back above yesterday's low of 4021.16 might signal a near-term recovery.
News and events this week
This week's economic calendar features US Initial Jobless Claims and preliminary October Consumer Confidence data from the Eurozone. Looking ahead, the Federal Reserve rate decision and the core Personal Consumption Expenditures (PCE) price index release will be major catalysts for both the US dollar and gold.
What would push it higher
If gold can hold the $4,000 psychological support and US economic data comes in weaker than expected, the pair could see a relief rally.
What would push it lower
If inflation concerns persist due to high energy prices and the US dollar remains strong, gold could break below the recent lows and continue its downward trajectory.
The engine has no open signal on this pair. Today's signals →