Gold is trading around 4,725 as I write this, and honestly, this has been one brutal week. There's no sugarcoating it. We've dropped from $5,200+ levels to here in what feels like a straight line down. That's nearly $500 wiped in less than a week.
The Fed held rates steady at 3.50-3.75% yesterday no surprise there, everyone expected that. But the tone was the problem. The dot plot trimmed 2026 rate cut expectations from two cuts down to just one. Powell came out and basically said inflation hasn't cooled as much as they'd hoped, and the oil shock from the Strait of Hormuz situation is making everything worse.
February PPI came in hot at +0.7%, way above consensus. The 10-year yield jumped to 4.2%, DXY pushed toward 99.9, and gold being the non-yielding asset it is got absolutely hammered.
On top of that, we saw massive liquidation across the board. Silver crashed over 13% intraday yesterday. This isn't just gold selling this is a broad-based risk flush. Institutional players are dumping liquid assets to cover margin calls from equity losses. Same playbook we saw in COVID crash March 2020 and 2008. Gold gets sold not because people don't want it but because it's the easiest thing to sell when you need cash fast.
Looking at the 4H chart, the picture is very clear price broke down from the $5,200 zone (that's where this whole selloff started), and since then it's been lower highs, lower lows, no structure break to the upside, nothing. We have an unconfirmed low near the $4,560 area. That's a level I'm watching as potential support, but I'm calling it unconfirmed because we haven't seen any real demand reaction from there yet. Just a wick so far that's not enough for me to call it a floor. For any sign of reversal, I need to see price break out above $4,960 with conviction. That's the order block zone I've marked.
I'm still in buy. That hasn't changed. But I've had to cut some entries at a loss because the drawdown was getting too deep to hold everything. I've trimmed the weaker entries and now managing my average around 4,870.
The macro environment right now hawkish Fed, strong dollar, rising yields, oil above $100 all of that is working against gold in the short term.
the structural bull case for gold hasn't died, The Iran-Hormuz situation is far from resolved. What we're seeing is a liquidity-driven shakeout, not a fundamental breakdown. But shakeouts can be painful, and they can last longer than your account can handle if you're not careful.
So patience. Discipline. No revenge trading. Let the levels do the talking....
The Fed held rates steady at 3.50-3.75% yesterday no surprise there, everyone expected that. But the tone was the problem. The dot plot trimmed 2026 rate cut expectations from two cuts down to just one. Powell came out and basically said inflation hasn't cooled as much as they'd hoped, and the oil shock from the Strait of Hormuz situation is making everything worse.
February PPI came in hot at +0.7%, way above consensus. The 10-year yield jumped to 4.2%, DXY pushed toward 99.9, and gold being the non-yielding asset it is got absolutely hammered.
On top of that, we saw massive liquidation across the board. Silver crashed over 13% intraday yesterday. This isn't just gold selling this is a broad-based risk flush. Institutional players are dumping liquid assets to cover margin calls from equity losses. Same playbook we saw in COVID crash March 2020 and 2008. Gold gets sold not because people don't want it but because it's the easiest thing to sell when you need cash fast.
Looking at the 4H chart, the picture is very clear price broke down from the $5,200 zone (that's where this whole selloff started), and since then it's been lower highs, lower lows, no structure break to the upside, nothing. We have an unconfirmed low near the $4,560 area. That's a level I'm watching as potential support, but I'm calling it unconfirmed because we haven't seen any real demand reaction from there yet. Just a wick so far that's not enough for me to call it a floor. For any sign of reversal, I need to see price break out above $4,960 with conviction. That's the order block zone I've marked.
I'm still in buy. That hasn't changed. But I've had to cut some entries at a loss because the drawdown was getting too deep to hold everything. I've trimmed the weaker entries and now managing my average around 4,870.
The macro environment right now hawkish Fed, strong dollar, rising yields, oil above $100 all of that is working against gold in the short term.
the structural bull case for gold hasn't died, The Iran-Hormuz situation is far from resolved. What we're seeing is a liquidity-driven shakeout, not a fundamental breakdown. But shakeouts can be painful, and they can last longer than your account can handle if you're not careful.
So patience. Discipline. No revenge trading. Let the levels do the talking....
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✅For Live Update on Gold Price and trade opportunities ; Join Free community
t.me/livepriceaction
t.me/livepriceaction
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.