Gold Extends Decline Below $4,000 as Risk Appetite Returns🔍 Market Context
Gold continues to struggle amid renewed optimism around US–China trade talks.
The shift in sentiment has reduced safe-haven demand, while softer expectations of further Fed rate cuts keep the US Dollar capped — offering limited downside support for XAUUSD.
However, the technical landscape remains clearly bearish.
The break below the $4,000 handle confirms continuation of the downtrend first outlined in early-week plans.
📊 Technical Analysis
Structure: Gold maintains a clean bearish channel on the H1–H4 frame.
Immediate resistance: $3,985 – $4,000 (former support, now supply zone).
Target zones:
• Short-term liquidity area near $3,925–$3,930
• Extended target sits around $3,880–$3,860, aligning with Fibo 1.618.
Invalidation: Only a sustained break and hold above $4,020–$4,030 would neutralize this short-term bearish bias.
🎯 Trading Outlook
If gold retests the broken $4,000 zone and fails to regain it,
expect sellers to extend control toward $3,920 or lower ahead of the FOMC meeting.
That event may later define the next recovery point — but for now, momentum remains firmly on the downside.
⚜️ Summary
Gold’s recent slide isn’t random — it’s structural.
The market is rebalancing after excessive bullish sentiment,
and liquidity below $3,900 is likely to attract attention before any significant rebound.
Watch the reaction near $3,920–$3,880 —
that’s where the next meaningful decision for gold may emerge.
📊 MMFLOW TRADING Insight:
“Smart money doesn’t chase candles — it waits for liquidity to shift.”
