Gold is experiencing increased pressure after breaching the lower boundary of the bullish channel, indicating a crucial shift where buyer dominance is diminishing. Although there was a brief rebound, this rise seems to only create a pullback area, subsequently triggering a new bearish response. On the 1-hour timeframe, the price action reveals that sellers are beginning to dominate, with selling pressure observed whenever the price approaches the resistance formed from the pullback. This scenario suggests that the previous bullish structure has deteriorated and Gold is now entering a more pronounced weakening phase.
From a technical perspective, several indicators reinforce this bearish outlook. The moving averages trending downward signal a shift in momentum towards selling pressure, while the declining ZigZag pattern confirms that the price structure is now forming lower highs and lower lows. Additionally, the MACD returning to the negative zone adds further pressure on Gold’s movement. With this combination of signals, the potential for continued decline grows, especially if sellers can maintain their control through tonight’s trading session.
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On the 15-minute timeframe, Gold is moving within a bearish channel characterized by a consistent ZigZag pattern forming lower highs and lower lows, while the downward sloping moving averages further emphasize waning buying momentum. This combination of technical signals indicates that sellers are still firmly in control, thus opening up the possibility for further declines. In this context, Gold could test a significant support level at 4,170, which will be a crucial point to determine whether the bearish pressure continues or if a short-term rebound occurs.
Technical Reference: sell while below 4,222
Potential Stop Loss 1: 4,213
Potential Stop Loss 2: 4,222
Potential Take Profit 1: 4,178
Potential Take Profit 2: 4,170
