The movement of Gold during the European session appears to follow a sideways pattern within a relatively narrow range. This situation indicates that market participants are still waiting for the next significant direction as the evening session approaches, when volatility typically begins to increase. The lack of strong buying or selling pressure suggests that the market is in a consolidation phase following previous selling pressure. However, the price still being contained within a bearish channel indicates that the strength of the buyers is not yet sufficient to reverse the current trends.
From a technical perspective, the ZigZag indicator and Moving Average (MA) continue to show a downward trend, reinforcing that the bearish pressure in the short term has not completely subsided. If the price fails to break through the nearest resistance level, it may continue to decline toward the next support area. Conversely, a breakout above the bearish channel could signal an initial significant directional change. At this point, Gold appears to be trading cautiously with a predominantly negative bias as the evening trading session approaches.
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The movement of Gold on the 15-minute timeframe shows a resurgence of selling pressure, with the ZigZag indicator still forming a bearish pattern and the sloping Moving Average (MA) reinforcing that declining tendencies remain dominant. Additionally, the Commodity Channel Index (CCI) weakening from the overbought area strengthens the signal that a corrective momentum is developing. The combination of these technical signals opens the door for Gold to continue its descent and test the support level around $3,956 in the near future.
Technical Reference: sell while below 4,030
Potential Stop Loss 1: 4,017
Potential Stop Loss 2: 4,030
Potential Take Profit 1: 3,967
Potential Take Profit 2: 3,956
