Critical Support Broken in Gold: 4% Warning from Saxo Bank

News that a critical support level has been broken in gold could increase selling pressure in the short term. Although the RSI at 35.7 is approaching oversold territory, there is no reversal signal yet. MACD is negative and below the signal line, momentum is weak. The price is trading well above the SMA20 and SMA50, which increases the risk of a pullback. Saxo's 4% warning could negatively affect market sentiment.

The gold price fell 3.8% in 24 hours to 47.32, slipping just below its 20-day simple moving average (SMA20). Although the RSI at 49 indicates a neutral zone, the MACD is trading below its signal line, suggesting weakening short-term momentum. Saxo Bank's warning that a critical support level has been broken reinforces the technical picture and points to continued selling pressure. However, the 50-day SMA at 46.24 may still act as support; as long as the price remains above this level, expectations of an excessive decline are limited. Nevertheless, news flow and price action are increasing downside risk in the short term.