Gold continues to attract market attention as XAUUSD remains under selling pressure, with recent price action suggesting that bearish momentum continues to dominate the short-term outlook.
Based on the H4 chart, gold is currently trading around 4,330, significantly below its recent high near 4,891. This represents a decline of approximately 11% to 12% from the latest peak, highlighting a notable shift in market sentiment over recent weeks.
The current market structure continues to display a clear series of lower highs and lower lows, indicating that sellers remain in control. Several recovery attempts since mid-May have failed to break above key resistance zones, resulting in renewed selling pressure each time the market attempted to move higher.
This weakness comes as investors continue to assess the outlook for US monetary policy and the strength of the US dollar. A stronger dollar typically weighs on gold prices, as the precious metal becomes more expensive for investors holding other currencies.
At the same time, improving sentiment across equity markets has reduced demand for traditional safe-haven assets, limiting buying interest in gold despite ongoing global uncertainties.
From a technical perspective, the 4,500 to 4,560 region has emerged as the nearest major resistance zone. This area has repeatedly acted as a strong supply zone and has successfully capped multiple recovery attempts over recent weeks.
As long as gold remains below this resistance area, the broader market structure is expected to remain bearish.
Market momentum indicators also suggest that sellers continue to maintain the upper hand. While short-term technical rebounds remain possible, there is currently limited evidence of a meaningful trend reversal back to a bullish market environment.
Looking ahead, traders are expected to closely monitor the key support level around 4,268, which represents the most recent swing low on the chart. A decisive break below this level could accelerate downside momentum and potentially open the door for a deeper correction.
On the upside, a sustained move above 4,560 would be the first indication that bearish momentum is beginning to weaken. Such a development could encourage a broader recovery and improve the medium-term outlook for gold.
In the coming sessions, market attention is likely to remain focused on US dollar performance, Federal Reserve policy expectations, and overall global risk sentiment. These factors are expected to remain the primary drivers of gold price movements.
Overall, the current outlook for XAUUSD remains bearish to neutral as long as prices continue trading below the key resistance zone. Traders should closely monitor price behaviour around current support and resistance levels for further confirmation of the market’s next directional move.
Disclaimer
This analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk, including the potential loss of capital.
