Gold sellers took more control last week after the price broke below the 100- and 200-hour moving averages on Monday.
The buyers could not reclaim those moving averages, and by Wednesday, the price began to accelerate to the downside
That sequence is important from a technical perspective. A break below the moving averages gives sellers the initial advantage. Staying below them—and then moving farther away from them—shows that buyers are struggling to take back control.
Last week, the sellers got their break and followed through. The decline extended below the early October low near $4064 on Thursday before finding a bottom near $3975. The price bounced into the end of the week, but the recovery left sellers with the stronger hand and buyers with more work to do.