Gold Slides Sharply as Markets React to Fed Signals and AI RallyHello everyone, looking at XAU/USD on the 4H timeframe today, I can clearly feel that gold has just gone through a very “textbook” correction after major news. From the 4,130 USD peak, price dropped quickly to 4,079 USD, losing more than 50 USD in a single session. At the moment, gold is trading around 4,090 USD, sitting below the Ichimoku cloud and having just filled part of the FVG around 4,100 — showing that sellers are still in control.
Technically, gold failed to break through the 4,130–4,150 USD resistance cluster. Last night’s sharp drop broke below the short-term support at 4,100, triggering a wave of profit-taking from earlier long positions. Now, the area at 4,070–4,050 USD is the nearest support and the level gold must defend to avoid a deeper decline towards 4,020–4,000 USD. Conversely, to return to an upward move, gold needs to reclaim 4,110 decisively — otherwise any rebound will likely be temporary.
Fundamentally, the market was moved just as much by news as by technicals. The FOMC minutes showed the Fed is still divided: one side worried about weakening labour data, the other insisting inflation hasn’t behaved consistently. This dampened expectations for an early rate cut, strengthening the USD, pushing DXY above 104 — and immediately weighing on gold. At the same time, Nvidia’s blowout earnings sent US equities sharply higher as money rotated into AI stocks, reducing gold’s appeal during a “risk-on” wave.
In this context, I see this as a healthy correction within a broader uptrend — not a reversal. Based on the way price is reacting, gold will likely retest 4,070–4,050 USD before attempting a rebound. If buyers return at that zone, price may recover toward 4,110–4,130 USD, especially if the USD pauses. If 4,050 breaks, gold may drop deeper to 4,020–4,000 USD to attract liquidity.
