Gold Spot sits at $4,497.72 on the 4H chart following red engulfing candles that fell beneath the $4,500 psychological support, the red 50 period MA at roughly $4,526 and the blue descending channel base. The bearish continuation from the $4,635 high is intensifying as lower lows are being made with very strong distribution wicks. This pushes price to the Fib extension of $4,460 to $4,436.
RSI is now below 45 signaling that momentum is not bullish. The volume profile indicates the failed fair value at $4,526 to $4,550 where selling pressure is now more dominant. The white descending trendline is acting as the ceiling to price recovery as it reaches the $4,576 area. Price is now bearish below the $4,526 area as it moves inside a very extended down-channel from the May highs. Resistance remains firm at the $4,635 pivot on the higher timeframe.
