Gold (XAU/USD) is accelerating its rebound from Wednesday's highs near $5,100, trading at $4,865 at the time of writing, with further declines remaining below $4,790. Precious metals prices are falling despite investor risk aversion, fueled by a broadly stronger US dollar.

The US dollar is returning to its safe-haven status, supported by risk-averse markets, after earnings from major US tech companies failed to impress investors, triggering a sell-off in the sector that dragged down global stock indices.

Furthermore, investor caution ahead of key monetary policy decisions from the European Central Bank and the Bank of England, due later on Thursday, is weighing on the euro and the British pound, providing additional support for the US dollar.

 

Technical Analysis

The four-hour chart for XAU/USD shows price action confined between Fibonacci retracement levels, with technical indicators suggesting weak upward momentum.

The stock price has fallen below the 100-period Simple Moving Average (SMA), and the Moving Average Convergence Divergence (MACD) is attempting to break below the signal line, a bearish indicator. Additionally, the Relative Strength Index (RSI) has dropped below 50, entering negative territory.

Immediate support is observed at the intraday low of $4,790. On the downside, the intraday support level near $4,600 is likely to attract sellers.

On the upside, the confluence of resistance levels—between the January 29 low around $5,100 and the 61.8% Fibonacci retracement level of last week's decline at $5,135—is likely to present a challenge for buyers. Above these levels, the next target would be the 78.6% Fibonacci retracement level at the $5330 area.