Gold has once again exhibited weakness after failing to maintain the RBS (blue marked area), a previously significant support zone for buyers. This inability to uphold the area indicates an increasing dominance of seller strength on the 1-hour time frame. The selling pressure intensifies as the European session approaches, particularly following the breach of the prior upward structure. This scenario is further reinforced by a sharp decline in the Moving Average indicators along with ZigZag patterns suggesting a downward reversal.
Moreover, the MACD, consistently operating in the negative zone, adds an additional signal that the bearish momentum of Gold is solidifying. The price’s failure to break back above the RBS reinforces the idea that buyers are currently losing their grip, paving the way for seller pressure to potentially drive prices even lower. Given this array of technical signals, the likelihood of selling remains predominant as we enter the European session, especially if prices struggle to climb back above the breached RBS area.
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The control of sellers on the 15-minute time frame is becoming increasingly evident, with prices forming a clear and consistent bearish channel heading downward. The ZigZag and Moving Average indicators further bolster the prevailing selling pressure, suggesting continued intraday downward movement potential. With these combined technical signals, Gold appears poised to test a significant support level near $3,970, where the price reaction in this zone could well determine the subsequent direction.
Technical Reference: Sell while below 4,060
Potential Stop Loss 1: 4,060
Potential Stop Loss 2: 4,060
Potential Take Profit 1: 3,988
Potential Take Profit 2: 3,970
