Currently, gold is experiencing heightened selling pressure after failing to maintain its previous bullish momentum during the recent pullback at the lower end of the bullish channel. The price is now creating a minor bearish channel, indicated by the dashed red lines, suggesting a potential for further declines in the short term. The ongoing ZigZag pattern reinforces the control of sellers, while the downward-sloping Moving Average (MA) adds to the strength of the bearish signal.
This combination of technical indicators provides gold the opportunity to continue its downward trend towards the next support area. Although short-term corrections may still occur as part of market dynamics, consistent selling pressure indicates limited chances for strengthening in the near future. Traders should keep an eye on critical levels within the minor bearish channel to anticipate future price movements.
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An breakdown of the bullish channel on the 15-minute time frame indicates that gold prices are beginning to shift into a bearish trend. The ZigZag pattern now corroborates the downward movement by forming a bearish structure, with the declining Moving Average (MA) further solidifying the weakening signal. With this technical backdrop, gold is likely to persist in its selling pressure, aiming to test significant support around $3,620.
Technical Reference: sell while below 3.678
Potential Stop Loss 1: 3.669
Potential Stop Loss 2: 3.678
Potential Take Profit 1: 3.628
Potential Take Profit 2: 3.620
