Today Technical Analysis: Gold trades above $4,500 as the Dollar index struggles to gain momentum

Gold Technical Analysis

Gold established a short-term peak at $4,595 on May 29. Since hitting that level, price action has been characterized by a sequence of lower highs and lower lows, indicating a localized bearish correction.

The faster moving averages MA5 and MA10 have crossed below the longer-term MA20, which supports the idea that short-term momentum has turned bearish. The price action is currently trading entirely below all three moving averages.

The outlook for XAUUSD on the 1-hour timeframe remains bearish to neutral until a definitive structural shift occurs. If the price breaks below the psychological level of $4,500, it could accelerate declines toward deeper structural support zones. To reverse the current negative momentum, buyers need to push the price back above the $4,535 level which would open the door for a retest of the $4,548.59 and potentially the $4,595.29 peak.

Gold 1H Chart

Source: STARTRADER app | Gold finds support at the psychological level of $4,500

Brent Technical Analysis

Oil appears to have completed a short-term bottoming process around $92.50 and is now transitioning into an uptrend. The moving averages MA(5), MA(10), and MA(20) show a bullish reversal with price trading above all of them. This is typically an early stage bullish trend structure.

A break above $96.50 would likely trigger a test of $97.40. If $97.40 gives way, the market could quickly challenge the $98.64 high. Volume increased during the rebound from $92.50, indicating genuine buying interest. The latest advance is occurring with moderate volume, which supports the bullish case.

Oil has shifted from a corrective downtrend into a recovery phase. The technical structure favors further upside, especially if geopolitical tensions continue supporting energy prices. A break above $96.50 would significantly strengthen the bullish outlook.

Brent 1H Chart

Source: STARTRADER app | Oil opens higher on Monday, recovering from last week's losses

Nikkei 225 Technical Analysis

Nikkei remains in a strong short-term uptrend. Price has been making a sequence of higher highs and higher lows since the 63,905 low formed on 28 May. The moving averages MA(5), MA(10) and MA(20) are aligned bullishly with price trading above all of them, and the shorter averages remain above the longer averages, confirming positive momentum.

The market recently broke above the previous consolidation zone around 66,600-66,700 and accelerated toward 67,248. The current structure resembles a bullish continuation pattern:

As long as price remains above 66,500, buyers maintain control. If 67,248 breaks, momentum traders could push prices to 68,000.

The chart remains technically strong. The uptrend is intact and there are no major reversal signals yet. The only concern is that price is approaching resistance after a sizable advance, making a short-term consolidation likely before the next move higher.

Nikkei 225 1H Chart

Source: STARTRADER app | Nikkei breaks a new record high above 67,200

AUTHOR

Ghassan Albohtori 

Financial Market Analyst - STARTRADER

Ghassan Albohtori is a financial market analyst with experience in macroeconomics, investing, and currency trading. He conducts in-depth market research covering fundamental and technical analysis of different instruments to find major changes in market trends. Mr. Ghassan's main focus is the effects of economic data on different asset classes and how this affects prices.

Risk Disclaimer: This material is provided for informational purposes only and does not constitute a recommendation or investment advice. Trading financial instruments on margin involves substantial risk and may not be appropriate for all investors.