Last trading session

• During the most recent trading session, Gold's price started with some gains, but this was quickly reversed by a notable intraday drop.

• After opening with signs of resilience, the price fell sharply and stayed weak for the rest of the session.

• Although there was a slight recovery towards the end, prices did not return to earlier levels, showing that sellers remained in control.

• Momentum and strength indicators remained low after this move, and the overall trading range contracted as the session closed.

Weekly trends

• Looking at the entire week, Gold experienced a marked downward trend overall, moving from a position of strength into a period of pressure and selling.

• Technical indicators like the moving averages slid lower throughout the week, with the shorter-term average falling below the longer-term one, which is a traditional sign of weakness.

• Gold's relative strength dipped into ranges associated with weaker momentum, and the price consistently remained near the lower end of its range as the week progressed.

• Support was briefly found after the initial sharp sell-off, but each recovery attempt was met by renewed selling, suggesting that the market does not have strong buying interest at current price levels.

• Key resistance now lies closer to the week's earlier highs, while the support is being tested and may not hold if selling pressure continues.

Risk assessment

• Volatility increased sharply during the week's major price move, with large swings seen at times, especially during the sharp decline.

• After the initial spike in volatility, measures of market movement gradually calmed, though levels remain above those seen before the drop.

• Trend strength indicators suggest that the recent downward move could continue, particularly in the absence of any new positive catalysts.

• While the overall Sharpe ratio (a measure of risk-adjusted returns) is only slightly positive, suggesting moderate reward for the risk taken, a relatively low beta shows Gold was less affected by broad market moves, hinting that recent weakness is more specific to Gold rather than a reflection of wider market turbulence.

Summary

• In summary, Gold is currently under pressure, having shifted from a period of strength to one of weakness during the last week.

• Short-term momentum remains negative, and buying interest appears limited after the recent sell-off.

• There are signs of stabilization at lower price levels, but there is no clear evidence that the downward trend has finished.

• At present, the overall outlook is cautious and slightly bearish, with the risk that prices could continue to find lower ground unless buyers step back in strongly.