Gold pauses near record highs as bulls struggle below $5,000

From a technical perspective, sellers have emerged ahead of the $5,000 psychological mark, capping the latest rally near record highs. However, the pullback has so far lacked strong follow-through, with buyers continuing to defend the $4,900 zone.

Trend conditions remain firm, with XAU/USD holding well above the 21-period and 50-period Simple Moving Averages (SMAs). The Average Directional Index (ADX) is hovering around 39, signaling a strong trend environment despite emerging signs of near-term exhaustion.

The risk of a deeper pullback is rising as overbought conditions persist across multiple timeframes. On the 4-hour chart, the Relative Strength Index (RSI) has eased back toward the 70 level and is printing a bearish divergence, signaling early signs of fading upside momentum.

On the downside, immediate support is seen at the $4,900 psychological level. A sustained break below this zone shifts focus to the 21-period SMA near $4,828, followed by the 50-period SMA around $4,709. On the upside, the $5,000 psychological mark remains the key resistance.