Gold Extends Weekly Decline as XAU/USD Trades at New 4-Week Low

Gold prices continue their downward trend as the U.S. market opens, with XAU/USD trading at a new 4-week low near $1,940. Despite weak demand for the U.S. dollar, the precious metal is poised to end the week with a significant decline. The daily chart of XAU/USD indicates a bullish attempt as the pair aims to surpass the 23.6% Fibonacci retracement level of the rally from $1,810.41 to $1,909.34 at $1,962.20. While showing positive developments throughout the day, it also forms lower highs and lower lows, trading below the 20-day Simple Moving Average (SMA). Technical indicators are slightly bullish but remain in neutral territory.

Looking ahead on the 4-hour chart, XAU/USD faces resistance around the descending 20-day SMA, dragging its trajectory below the flat 100-day SMA. A breakout beyond these indicators would encourage buyers and potentially yield higher profits throughout the day. Meanwhile, the technical indicators point upward within negative territory.

Support Levels: $1,945.20, $1,933.20, $1,923.10

Resistance Levels: $1,965.30, $1,978.30, $1,989.00