XAUUSD Short: Bears Aim for Pullback Into $4,260 Demand ZoneHello, traders! The current XAUUSD price action is showing early signs of bearish pressure after failing to sustain momentum above the upper resistance zones. Earlier, the market formed a strong Double Top inside the major Supply Zone, which triggered a sharp downside reversal and highlighted the presence of active sellers at the top of the structure. This rejection pushed gold back toward the mid-range levels, signaling a shift in market sentiment. After that decline, XAUUSD entered a prolonged Range phase, where price consolidated and accumulated liquidity for the next move. Although buyers attempted to regain control, the Trend Line breakout attempts showed weakening bullish strength, as each move higher was met with increased selling interest. The second consolidation Range formed near the upper supply boundary, confirming that the market was losing upward momentum.
Currently, gold broke out above the Range high but quickly faced resistance near $4,330, where sellers stepped in aggressively. Price is now pulling back and showing signs of returning toward the $4,260 level — a key decision zone that aligns with previous structure and where demand has recently weakened. As long as XAUUSD remains below the $4,330 resistance and fails to reclaim the local high, the bearish scenario becomes the primary outlook. A sustained move back into the Range and a breakdown below $4,260 would confirm stronger seller dominance and open the path toward deeper corrective movement.
My scenario is a continuation to the downside toward the $4,260 Demand Zone, especially if price breaks below $4,260 and loses the ascending structure. A clean breakdown of this level may trigger a broader bearish continuation. Manage your risk!
