Gold remained under strong selling pressure on Wednesday, with spot gold falling towards the 4400 area after failing to hold above previous support levels. The market continues to shift into a deeper correction phase in the short term.
The main driver behind this decline is the easing of geopolitical tension in the Middle East. Reports of potential progress between the US and Iran have dampened safe-haven demand, triggering profit-taking in gold after a strong rally earlier this year.
It is worth noting that gold weakened despite a weaker US dollar and lower Treasury yields, indicating that the current price movement is mainly driven by lower geopolitical risk premia and market position adjustments.
Technical analysis
Daily structure
Downward momentum remains dominant
The double top structure has been confirmed near 4580
Neckline support at 4500 was broken
Resistance remains at 4530-4545
Main support is near 4400
4H structure
The downtrend remains intact
The Bollinger Bands indicator continues to expand downward
Weak rebound momentum keeps sellers in control
If the 4400 level is breached decisively, gold could extend lower towards the 4350 area.
Day trading strategy
Bias current:
Sell pools while maintaining strict risk management.
Short strategy
Sold around 4470-4480
Stop loss:
4500
Objectives:
4430
4400
4350 stretch goal
Long strategy
Buy around 4350-4360
Stop loss:
4330
Objectives:
4400
4420
4430 stretch goal
Market forecast
As long as gold remains below the 4500 level, downward correction pressure is likely to continue in the short term.
Key factors to watch for:
Middle East developments
Movement of the US dollar
Treasury revenues
Market sentiment as a safe haven
Trading is a long-term journey built on discipline, patience, and continuous learning. The market changes every day, but improving our mindset, strategy and risk management is what really helps us grow over time.
Thank you to the TradingView community for your continued support and interaction. I look forward to connecting with more traders around the world to share market insights, exchange trading ideas, and learn from each other.
Whether you are an experienced trader or still working on improving your strategy, you are always welcome to connect, discuss and grow together.
Be disciplined. Be patient. Trade with the Hulk.
