FX.co ★ XAU/USD, GOLD

Gold on the H4 chart is showing a strong bearish trend, with price continuing to create lower highs and lower lows. The market has been under selling pressure since failing to hold above the major resistance area near 4660. I can see that every bullish recovery during the last several weeks has been short-lived, while sellers have repeatedly returned to push the price lower. The recent breakdown below the 4285 support zone is an important technical development because it confirms that bearish momentum remains dominant. The candles on the right side of the chart show a sharp decline followed by only a weak consolidation, which suggests that buyers are struggling to regain control. Volume increased during the latest selloff, indicating that the move had strong participation and was not simply caused by low liquidity. The RSI is currently trading near the oversold area around 22, showing that selling pressure has been very strong. However, an oversold RSI does not automatically mean that the trend will reverse. In strong downtrends, the RSI can remain near oversold conditions for a long period while price continues to fall. I think traders should pay close attention to the current support zone around 4210–4240 because this area may influence the next short-term move. If buyers manage to defend this level, a temporary rebound could develop, but the overall trend would still remain bearish unless stronger resistance levels are reclaimed.

The technical picture continues to favor sellers while price remains below the broken support levels and beneath the previous consolidation ranges. I believe the market is currently reacting to strong bearish sentiment, and traders are likely watching for signs of either continuation or exhaustion. The nearest resistance is now located around 4240–4285, which was previously acting as support. In technical analysis, old support often becomes new resistance after a breakdown. I can see that the recent candles are still closing near their lows, showing that selling pressure remains active. A sustained move below 4210 could open the door toward lower targets around 4180 and potentially 4150 in the coming sessions. On the other hand, if buyers succeed in pushing gold back above 4285, the market could attempt a recovery toward 4350. Even so, such a move would likely be viewed as a correction unless price can establish higher highs and higher lows. I think the safest conclusion from the current chart is that the medium-term trend remains bearish, while short-term rebounds are possible because the RSI is deeply oversold. Until a clear bullish reversal pattern appears, sellers continue to hold the technical advantage, and any upward movement may face strong resistance from traders looking to re-enter the dominant downtrend.