Saad Ullah
Gold (XAU) hit strong resistance at $3,878–$3,880 early in the session and is now showing signs of exhaustion. Intraday charts suggest sellers may step in, with potential targets near the $3,800 zone.
Intraday Setup
After a sharp rebound, gold has paused at the $3,878–$3,880 resistance level, an area that previously triggered heavy selling. Trader Mavia_trader noted this setup as a short opportunity, expecting the market to "take out liquidity" before breaking the range lower.
The chart highlights a supply zone where the rally stalled, leaving downside pressure in focus. The support target at $3,798–$3,793 is now the key area traders are watching.
Key Technical Observations
The resistance zone between $3,878–$3,880 shows clear rejection after price tested overhead supply. The support zone at $3,800–$3,793 represents a major liquidity pool that could attract sellers' targets. The intraday pivot point at $3,866 will help confirm bearish continuation. While gold remains in a broader uptrend, the short-term structure points to a corrective pullback.
Market Context
A recovering U.S. dollar is pressuring gold in the short term, while higher bond yields continue to weigh on precious metals. The price action suggests a classic liquidity sweep at resistance before potential downside continuation.
What's Next
As long as gold remains below the $3,878–$3,880 zone, the bias tilts bearish intraday. A drop toward $3,800 is likely if sellers maintain control. Bulls will need a clean breakout above resistance to regain momentum and extend the rally.
Saad Ullah
