XAUUSD .
π¨ GOLD WARNING: $4,366 SUPPORT IS ABOUT TO BREAK?
So, the downside momentum we were expecting in Gold has finally played out. At this point, some buyers are clearly starting to feel uncomfortable because they had become heavily and aggressively bullish based on the overall market structure. That is exactly why I was expecting these buyers to get trapped. As I mentioned earlier, we had a strong resistance zone around $4,450 on the left side of the chart, and because of that resistance, selling pressure was likely to enter the market β and that is exactly what we have seen today.
Now, Gold has made a low around $4,366, and if you look closely, the market has started trading near the lows of Tuesday and Wednesday. Naturally, many traders are now treating this area as a strong support zone and are trying to buy around $4,366. However, considering the intensity of today's decline and the strong selling pressure that came from the higher levels, I believe a complete recovery from here is highly unlikely. There is no major red-hot news or significant geopolitical catalyst at the moment that would justify a strong upside move in Gold from these levels.
For now, I am waiting for a little more liquidity to build before taking the next directional view. My bias remains strongly bearish below $4,400, and I personally don't expect Gold to reclaim $4,410 under the current structure. We may see some temporary buying around $4,390 or below $4,400, but I would treat that as potential liquidity rather than a confirmed reversal. Over the next few hours, my expectation is for Gold to eventually break below $4,366, and if that breakdown occurs with proper confirmation, I can see the market moving toward $4,347.
So that's my quick update for now. I hope you found it useful.
What is your current bias on Gold β bullish or bearish? Let me know in the comments.
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