By looking at the $XAU chart on the 4 hour timeframe, we can see that Gold followed the bearish trend very strongly and fell heavily from the $4685 to $4700 supply zone down to around $4464. This confirms one of the strongest recent sell offs in Gold.
Right now, Gold is trading near the $4505 area after bouncing back from the low near $4464, but overall market structure is still bearish.
The most important level currently is around $4515. If price stays below this level, chances of another strong fall become much higher.
Important Resistance Zones
$4515 to $4550 → nearest supply/resistance area
$4580 to $4605 → stronger resistance zone
Important Support Zones
$4440 to $4465 → nearest demand/support area
$4400 → deeper strong support level
This type of heavy sell off usually happens during serious geopolitical tensions or war related fears. The interesting thing is that there has not been any official major trigger strong enough to fully explain this panic move. It almost feels like Gold market is reacting before the public fully knows the situation.
There is still concern that tensions with Iran could increase again. If that happens, markets may become highly volatile once more.
For now, overall trend remains bearish and traders are closely watching the technical zones step by step.
Trade Update 📊
The bearish prediction worked exactly as expected. After staying below the important $4515 level, Gold continued falling and reached around $4452, showing that sellers are still controlling the market.
Later, buyers pushed Gold back toward the $4500 area, but even after this rebound, the bigger trend still looks bearish.
Now the $4515 to $4535 zone has become an important short term resistance area. As long as Gold stays below this zone, chances of another bearish move remain high.
So far, this analysis has already given more than 500 pips movement.
Right now the market is very sensitive to news and geopolitical developments. Any sudden escalation in tensions can increase volatility very quickly. 🌍⚠️
