Gold prices may continue to fall. Isabella_Golden’s OANDA: XAUUSD — TradingView

Gold prices may continue to fall.

Gold prices fell 2%, breaking through the $4,500 mark! Markets are witnessing strong selling from major investors – are you panicking?

Many considered $4,500 to be a strong support level, but sellers were able to break through it with force!

At the opening of Asian trading today, the price of gold fell below US$4,500 for the first time since the end of March; the decline accelerated during the US trading session, with a drop of 2%, hitting a lowest level of US$4,470.45.

This sharp drop is enough to liquidate any long position immediately – this is not a pullback, but a catastrophic crash!

The price of gold is currently fluctuating around $4,490, and the overall trend today is very weak. The U.S. trading session is not over yet and the bearish momentum continues.

Why did gold fall tonight?

Main line 1: The Fed’s stance of “expanding debt and raising interest rates” has been fully confirmed.

Gold is an interest-free asset. Who will hold interest-bearing gold when the 10-year U.S. Treasury yield rises above 4.44%?

Key story 2: The U.S. dollar index rose above 99, violating the risk aversion logic

Gold’s traditional safe-haven properties have been significantly weakened, and funds are flowing from gold into the U.S. dollar.

Main news 3: Agencies start downgrading credit ratings

The days when the three major investment banks unanimously predicted gold prices would hit $5,000 are over. Market sentiment turned completely pessimistic.

This is not retail selling, but large institutions taking the initiative to reduce their holdings!

Technical Analysis: New battlefield after breaking through the 4500 mark

With the breakthrough of 4500 points, the technical picture has completely changed. 4500 points has changed from “support level” to “upper limit”. Looking at the 4-hour chart, as long as the price cannot truly move above the 4500 level, any bounce could be viewed as a buyer’s trap. Selling high remains the safest strategy.

Latest updates on major gold price levels:

First resistance level: 4500-4510 (former support level, current resistance level)

Last defensive level: 4530 (any bounce before this level is considered a buyer’s trap)

First downside target: 4470 (near today’s low)

Next target area: 4452-4480 (Major Bearish Pressure Area)

In particular, it is important to note that if the price of gold actually falls below $4,500 on the weekly chart, the probability of a decline will increase and may reach $4,360 or even lower. The current support level of $4,492 is simply not enough for sellers once the $4,500 level turns from a strong pivot to the starting point for a downward attack!

Go with the flow, don’t follow it.

Current Gold Trading Strategy: A downtrend has formed and any attempt to buy when prices are falling is risky! Going with the trend is the only right choice. Don’t imagine yourself buying into a falling knife when the market crashes; this is the most common mistake beginners make!

👈 If you are a bull: I have to be honest with you – if you have been caught in a rally or are still holding a losing position, now is not the time to hesitate.

A break above the $4,500 level removes the technical basis for the uptrend.

The professional thing to do is to honestly cut your losses and wait for a better entry opportunity. Don’t go against the trend!

👈 If you missed the short selling opportunity: Since you missed the decline, don’t rush to rebound! Wait patiently for the price to rebound to the 4500-4510 range before opening a position, and set the stop loss order above 4530.

The secret to successful gold trading is not who shouts the loudest, but who can accurately predict the trend and follow it. The trend is obvious and everyone knows it; whether you can profit from the coming decline depends on your execution and courage!

Follow my daily live market analysis to help you accurately understand every trend in the gold market! 🎯🚀🚀🚀