Usman Salis
⬤ Gold is starting to look weak again as it nears a price ceiling that has blocked every recent attempt to rise. The weekly bias stays negative while the metal sits in a zone where buyers have repeatedly failed to push higher - the price now presses against that upper limit and appears ready to turn back down.
⬤ XAU sits close to the $4,215 - $4,225 band where the latest up move has stalled. Unless gold suddenly climbs above this barrier the zone should continue to hold. The chart points toward a decline that reaches $3,900, the main downside objective, a sizable fall from where the market now trades.
⬤ Price action backs the negative view. Gold rose from its earlier lows but has slowed as it nears this structural ceiling. Earlier swings show the same hesitation at this level - momentum is expected to swing downward unless a firm breakout appears soon.
⬤ A clear rejection from the present area could reshape short term views on safe haven demand, volatility and macro-related flows. If XAU drops toward the $3,900 target, the fall may force traders to reassess risk appetite across the precious metals space.
Usman Salis
