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XAUUSD falls below 4,683 as gold loses short-term support and focus turns to Fibonacci demand zone
On the 2-hour chart, gold prices are weakening, with the price falling below the 4,683 support area and starting to clearly tilt towards a bearish correction structure.
The wider context also adds to the pressure. Spot gold prices in India fell on Friday, reflecting a weaker overall tone for the metal. This in itself doesn’t define the chart, but it supports what price action is already showing: momentum has cooled, support is being tested, and the market is no longer trading from a short-term strong position.
At this point, the diagram is more important than the title.
The diagram shows a structure starting to lose its balance.
Technical structure
From a technical perspective, XAUUSD has now fallen below the 4,683 area, which serves as an important short-term support level. Once price begins to move below such levels after repeated pressure from above, the structure typically shifts from neutral pressure to risk of a continuation of the downtrend.
The rising trend line that supported the previous recovery phase is also under pressure. Price is no longer fully holding above this structure, which tells us that buyers are losing control of the rally that was built in the first half of the month. This is important because once trendline support and horizontal support begin to weaken together, the market will often move to the next deeper area of demand rather than recover immediately.
The next area is the Fibonacci buy zone at 4,585, which is the first major bearish support level on the chart. This area is important because it is the first area where the market may attempt to stabilize after losing its current base. If gold finds demand there, the decline could slow to a consolidation. If not, the structure would provide room for deeper downward extension.
On the positive side, the 4800 area remains the main upper limit for the recovery. This area represents the broader ceiling for sellers and also determines the level buyers need to recoup before any stronger recovery begins to rebuild.
So, the structure is now clear:
Price falls below 4,683
The regression trend line is weakening
The next major bearish focus is near 4,585
Price remains below 4,800, recovery still limited
This puts gold in a weak phase.
The market hasn’t quite accelerated its decline yet, but the charts are increasingly leaning toward continuing the decline unless support is quickly reestablished.
Key technical level
Resistance: 4,800
This is the main obstacle to recovery on the chart. Gold needs to rebound strongly above this area before the overall structure can return to recovery.
Breaking support/near resistance: 4,683
This area acted as short-term support but has now been lost. If prices remain below that level, the market remains under downward pressure and any rebound may struggle to gain momentum.
Fibonacci buying zone: 4,585
This is the first big bearish demand zone. If the current weak trend continues, it is the most important correction area on the chart.
Lower extension area: less than 4,585
If Fibonacci support fails to hold, the chart will open room for a broader bearish continuation beyond the current correction.
market scene
Scenario 1 – Recovery to 4,683 and stabilization above this level
If buyers can retrace 4,683 and hold above this area, the immediate downward pressure will begin to ease. This may indicate that the crash has not yet been fully accepted and the market may return to consolidation in the short term.
Scenario 2 – Stay below 4,683 and move to 4,585
This is a continuing downward trend. If prices remain capped below previous support, gold could continue its slide towards the Fibonacci buy zone at 4,585, where the next meaningful reaction could occur.
Scenario 3 – Hold 4,585 and try to bounce back
If the Fibonacci demand zone attracts new buying interest, the market may stabilize and attempt a technical rebound. Even in this case, recovery would need to first deal with 4,683 points before a stronger bullish case could develop.
Scenario 4 – Below 4,585
If sellers gain clear acceptance below the Fibonacci support area, the correction will become deeper and a broader bearish structure will open up further.
Market vision
The gold market is no longer in a state of healthy recovery.
The trading market has lost its major support level and is now heading towards deeper corrective support.
In my opinion, 4,683 is now the level that defines short-term weakness. As long as the price remains below it, the structure remains under pressure. The next area of interest is 4,585 and the market will have to prove whether buyers are strong enough to rebuild. On the positive side, 4,800 remains a level that needs to be reclaimed before the bearish tone starts to fade.
So far, a break below support would make the bearish case more credible as the price continues to trade below the previous structure.