Gold Corrected as Expected – Is the Downtrend Ready to Resume?
XAUUSD, 60
In yesterday’s analysis, I argued that after the massive sell-off from the end of last week, Gold could temporarily correct part of the move before resuming the broader bearish trend.
And that is exactly what happened.
Yesterday turned into a classic correction day for Gold, with buyers managing to push the market higher throughout the session.
Then, during the Asian session overnight, Gold extended the recovery and reached a high around 4590, slightly above yesterday’s New York session high.
Now the key question becomes: Is the correction already over?
From my point of view — yes.
And the reason is simple:
I do not expect Gold to correct in a clean textbook manner by fully retesting the broken 4650 support zone.
Markets rarely move in the most obvious way, especially when it comes to Gold.
At this moment, the recovery already looks more corrective than impulsive, and the inability to extend significantly higher despite the rebound suggests that sellers are still in control of the broader picture.
Why I still lean strongly bearish:
- The broader structure remains heavily negative
- The recent breakdown changed market character significantly
- The current rebound lacks the strength of a true reversal
- Gold continues to struggle below former support zones
Going further, I expect downside continuation once this recovery fully fades.
Trading plan:
For now, I continue to look for selling opportunities on rallies, considering the 4590 zone a potential local top.
Main downside objective:
➡️ 4400 zone
At the same time, I keep in mind yesterday’s low around 4480, which could temporarily slow the decline before continuation.
For me, this still looks more like a market catching its breath after a collapse — not one preparing for a sustainable recovery 🚀