XAU/USD overnight failure to build on the momentum beyond the downward sloping 100-hour Simple Moving Average (SMA), and the subsequent fall, favor bearish traders. The Moving Average Convergence Divergence (MACD) line stays below its signal line and under the zero mark on the 1-hour chart, while the negative histogram narrows, hinting at fading downside momentum. The Relative Strength Index stands at 40.75 (neutral-to-bearish), ticking up from prior readings and signaling early stabilization.
Below the falling average, Gold sellers retain the initiative and risk skews to the downside. A decisive close back above the 100-SMA would be needed to shift tone, as a sustained MACD turn higher and an RSI move through 50 could open a recovery phase. Until those signals materialize, rebounds in the precious metal will face pressure, and the broader setup will continue to favor tests of lower levels.