Gabling in Gold?
Technical View:
Gold has been moving within a rising channel, but the recent rejection from the upper boundary near $4,078 indicates potential exhaustion. The price has now broken below the immediate channel support, signaling the start of a corrective phase.
The CCI indicator has rolled over from the overbought zone, confirming loss of upward momentum. Volume analysis suggests weakening buying interest on each successive rally.
This structure favors a short-term pullback if $4,072 breaks decisively.
Macro View:
Broader macro sentiment remains mildly negative for gold in the near term:
• US Dollar Index (DXY) has regained strength, supported by higher US Treasury yields ahead of key inflation and retail sales data this week.
• Market expectations of an extended Fed pause are giving way to speculation of a “higher-for-longer” stance, keeping real yields positive — a headwind for non-yielding assets like gold.
• ETF inflows remain tepid, suggesting institutional money is cautious at current high levels.
• Additionally, oil price stability and easing geopolitical risk premium have reduced safe-haven demand for gold.
Together, these factors point to limited near-term upside for bullion.
Trade Setup:
• Action: Initiate short positions below $4,072 only on breakdown confirmation.
• Stop Loss: $4,091 (closing basis)
• Target 1: $4,055
• Target 2: $4,030
• Extended Target: $4,000
Execution Note:
The trade will be executed strictly as per the chart levels. It is possible that the entry level may not trigger today, in which case the setup becomes invalid and should be re-evaluated. No trade should be taken without price confirmation below $4,072.
Note:
Gold remains technically stretched, and the pattern breakdown aligns with a consolidative phase in global commodities. Short-term sentiment is tilting bearish unless the metal sustains above $4,091 on volume-backed strength.
