Peter Smith
⬤ Gold ran into trouble near the 4,354 mark and couldn't push higher. The metal tried to break through but got rejected, and sellers quickly took control. What looked like a promising move up turned into a retreat as the price started sliding back down from that resistance zone.
⬤ The charts show gold forming lower highs after that failed attempt – a classic sign that buyers are losing steam. The rally just didn't have enough muscle behind it to punch through the supply sitting at that level. Now the market's vulnerable to a bigger pullback.
⬤ Traders are now watching the rising trendline that's been holding things together, sitting around 4,160. That line has been acting as a floor throughout this whole pattern. The setup suggests gold could drift down toward that support area unless something changes. Without a strong move back above 4,354, there's not much reason to expect an immediate recovery.
⬤ How gold handles the 4,160 zone will probably set the tone for what happens next. If it bounces there, we might see another attempt higher. But if that support gives way, the downside risk increases significantly. The next few sessions around that level should tell us a lot about where gold's headed in the short term.
Peter Smith
