XAUUSD — 4,060 Is the Sell Zone
Gold is trying to bounce, but this bounce does not feel clean enough to trust yet.
Price reacted from the lower area near 4,030, then started climbing back toward the 4,045 - 4,060 zone. At first glance, that can look like buyers are coming back. But when you slow the chart down, the move looks more like price walking back into a sell zone rather than starting a strong bullish reversal.
The key detail is the retracement. Gold is now moving back into the 0.618 - 0.786 area, which sits around the marked sell zone near 4,055 - 4,065. For newer traders, this is where the market often becomes tricky. A bounce after a sharp drop can make buyers feel confident, but if that bounce only reaches a premium area and then stalls, smart money may use it to reload sell positions.
That is why my main view is bearish while gold stays below 4,075.487. The wider backdrop still supports pressure too, with inflation concerns, Fed expectations, and USD strength limiting gold’s recovery. So instead of treating this bounce as a full recovery, I see it more like the market breathing upward before deciding whether sellers are ready to push again.
If price rejects from 4,055 - 4,065 and breaks back below 4,045.308, the next area I expect gold to hunt is 4,030 first, then the deeper sell-side liquidity around 3,983.545.
This bearish idea becomes weak only if gold reclaims 4,075.487 and holds above it. That would tell me sellers failed to defend the premium zone, and the structure may need to rebalance higher before dropping again.
Key price zones to watch
Current reaction area: 4,045.308
Main supply / sell zone: 4,055 - 4,065
Bearish confirmation zone: clean break below 4,045.308
First downside target: 4,030
Main downside liquidity target: 3,983.545
Upper resistance if sellers fail: 4,075.487
Major upside liquidity: 4,138.553
Invalidation: clean reclaim above 4,075.487
Do you see this bounce as a real buyer comeback, or just a premium pullback before gold hunts 3,983 again?
Gold is trying to bounce, but this bounce does not feel clean enough to trust yet.
Price reacted from the lower area near 4,030, then started climbing back toward the 4,045 - 4,060 zone. At first glance, that can look like buyers are coming back. But when you slow the chart down, the move looks more like price walking back into a sell zone rather than starting a strong bullish reversal.
The key detail is the retracement. Gold is now moving back into the 0.618 - 0.786 area, which sits around the marked sell zone near 4,055 - 4,065. For newer traders, this is where the market often becomes tricky. A bounce after a sharp drop can make buyers feel confident, but if that bounce only reaches a premium area and then stalls, smart money may use it to reload sell positions.
That is why my main view is bearish while gold stays below 4,075.487. The wider backdrop still supports pressure too, with inflation concerns, Fed expectations, and USD strength limiting gold’s recovery. So instead of treating this bounce as a full recovery, I see it more like the market breathing upward before deciding whether sellers are ready to push again.
If price rejects from 4,055 - 4,065 and breaks back below 4,045.308, the next area I expect gold to hunt is 4,030 first, then the deeper sell-side liquidity around 3,983.545.
This bearish idea becomes weak only if gold reclaims 4,075.487 and holds above it. That would tell me sellers failed to defend the premium zone, and the structure may need to rebalance higher before dropping again.
Key price zones to watch
Current reaction area: 4,045.308
Main supply / sell zone: 4,055 - 4,065
Bearish confirmation zone: clean break below 4,045.308
First downside target: 4,030
Main downside liquidity target: 3,983.545
Upper resistance if sellers fail: 4,075.487
Major upside liquidity: 4,138.553
Invalidation: clean reclaim above 4,075.487
Do you see this bounce as a real buyer comeback, or just a premium pullback before gold hunts 3,983 again?
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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.
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.