On the 1-hour chart, bearish signals have become increasingly apparent as Gold prices have breached the bullish channel that previously supported upward movement. This condition indicates a weakening of the buyers’ dominance, marked by a reversal in the zigzag pattern and a Moving Average (MA) also confirming selling pressure. This shift in technical structure suggests the possibility of a deeper correction during tonight’s trading session.
In addition, the MACD indicator’s negative movement reinforces the bearish trajectory, providing further signals that the downward momentum is intensifying. With a solid combination of technical signals, Gold could continue its correction to test the nearest support area. As long as prices fail to climb back above the bullish channel, the outlook for weakness remains dominant, and buyers are likely to adopt a defensive stance.
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Breaking below the bullish channel on the 15-minute time frame indicates a shift in Gold prices toward a bearish trend. The ZigZag pattern now confirms a downward movement, forming a bearish structure, while the sharply declining Moving Average (MA) further strengthens the weakness signals. Given this technical combination, Gold is likely to maintain selling pressure to test a crucial support level around $3,628.
Technical References: sell while below 3.693
Potential Stop Loss 1: 3.684
Potential Stop Loss 2: 3.693
Potential Take Profit 1: 3.637
Potential Take Profit 2: 3.628
