XAU/USD | Gold Drops Sharply From The Supply Zone,Is $4000 Next?

Jul 23

By analyzing the #Gold chart on the 2H timeframe, we can see that after reaching the $4166 region, price finally entered the supply area where sellers became active. Gold then faced heavy selling pressure and dropped sharply toward $4040. Currently, price is trading around $4049.

Considering the continued strength in Oil, I still believe Gold could extend its decline below the psychological $4000 level. However, this bearish scenario needs confirmation.

For the next bearish move to become valid, Gold must break below $4040 and close a 2H candle under this level. If that happens, the next downside targets to monitor are $4020, followed by $4000, $3980, and potentially $3960. Until this confirmation appears, the reaction around $4040 remains the most important thing to watch.

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Best Regards , Arman Shaban

Jul 24

Trade closed: target reached

By analyzing the #Gold chart on the 2H timeframe, we can see that after the previous analysis, price continued lower and reached the $4021 region.

After that decline, buyers stepped in and pushed Gold back toward $4063. However, this recovery remained limited and price has started correcting again. Gold is currently trading around $4047.

In my view, this recovery looks more like a temporary pullback before another stronger bearish move. If Gold breaks below $4021 and stabilizes under this level, the probability of a deeper decline will increase significantly.

The next downside targets to monitor are $4000, followed by $3980, then $3960, $3940, and potentially $3900 if selling pressure continues to build.

For now, my main bias remains bearish, and the reaction around $4021 will be the key confirmation for the next move.