Gold's technical picture deteriorated sharply in the past week. The price broke below the 20-day moving average on June 19 and accelerated lower, closing well below it every session since. The June 24 close at $3,990.30 was the first below $4,000 since April and sliced through the psychologically important level.
The 50-day moving average at $3,980 is the immediate support. A close below this level would open the path to $3,800, where the 100-day moving average and the March breakout level converge. The daily RSI at 35 has not been this oversold since the August 2025 correction.
The MACD generated a bearish cross on June 19 and the histogram bars continue to expand downward, indicating momentum is still accelerating to the downside. The ADX (Average Directional Index) rose to 38, confirming the downtrend is strong, not a ranging market.
On the upside, resistance is now at $4,200-4,220 (previous support turned resistance), then the 20-day MA at $4,195. A recovery above $4,220 would signal the selling is exhausted and the uptrend could resume. But that requires a catalyst the market currently lacks.
The technical damage is significant. Gold's 8-day losing streak was its longest since 2023. Buyers should watch for a weekly close below $3,980 to confirm the bear trend, or a bounce above $4,200 to signal recovery. The RSI near oversold suggests a tactical bounce is possible, but trend followers should wait for the MACD to turn before adding long exposure.