Gold testing the buyers. There is a cooling in the gold price but the fire is not fully out

Double Top – Price Falls Below the 100-Hour MA and $4,000 Level as Buyers Face a Test

Gold’s recent rally has been impressive, breaking above the $4,000 mark and reaching as high as $4,059.31. The metal approached this peak twice during the week, with today’s high stopping just short at $4,058.01—slightly below Wednesday’s top. After failing to break higher, momentum shifted, and sellers regained control, pushing prices lower.

The decline brought gold back below the 100-hour moving average at $3,978.82 and under the 38.2% Fibonacci retracement of the latest bullish leg at $3,967.54. However, it managed to hold above the 50% retracement level at $3,939.20. Historically, gold’s recent upswings have shown only shallow pullbacks—often not reaching the 50% mark—keeping the broader bullish trend intact (as highlighted by the yellow zones on the chart).

For now, a short-term battle is unfolding. On the upside, the 100-hour MA ($3,978.79) now serves as resistance. On the downside, the 50% retracement at $3,939.20 is the key level sellers need to break to extend the correction. Until this standoff is resolved, gold appears to be “cooling off,” consolidating after a sharp rally—but the bullish momentum hasn’t completely faded.

The key question for traders: can sellers maintain pressure below the 100-hour MA and drive the price through the 50% retracement, deepening the pullback? Or will buyers reclaim control by pushing back above the moving average and reigniting the uptrend?