An ascending parallel channel frames Gold’s advance, with the upper boundary near $5,158.99 capping immediate upside for the precious metal. However, the Relative Strength Index (RSI) at 70.25 is overbought on the 4-hour chart and warns that gains could stall unless momentum re-accelerates. Moreover, the Moving Average Convergence Divergence (MACD) histogram has slipped into negative territory and is widening, showing the MACD line below the Signal line and a build-up of bearish momentum.
On the downside, the lower end of the ascending channel aligns near $4,973.57 and should act as a tailwind for Gold. If sellers extend control as flagged by the negative MACD tone, the XAU/USD could extend the corrective decline. That said, the RSI holding near 70 would favor consolidation over a deeper reversal. A decisive close below the channel base would undermine the bullish structure and shift focus to lower levels.
