Technical analysis: XAU/USD weakens after failing to sustain gains above $5,400

The near-term outlook for Gold turns bearish after buyers failed to sustain gains above $5,400. Price action on the 4-hour chart is forming a bearish flag pattern, signaling the possibility of further downside if support levels fail to hold.

The 100-period Simple Moving Average (SMA) near $5,093 aligns closely with the lower boundary of the flag, making it an important immediate support zone. A decisive break below this level could accelerate selling pressure and expose the next downside targets at $4,850, followed by $4,650.

On the upside, bulls would need to decisively reclaim and break above the $5,400-$5,500 resistance zone to invalidate the bearish structure and revive the broader uptrend.

Momentum indicators also point to growing downside pressure. The Relative Strength Index (RSI) has dropped sharply from overbought levels above 70 to around 39, indicating fading bullish momentum.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator has turned negative, with the MACD line falling below the signal line and the histogram expanding into negative territory. At the same time, the Average True Range (ATR) is rising, highlighting increasing volatility as selling pressure builds.#GateLanternFestivalRedPacketGiveaway $PAXG ‌