Gold's recovery has been impressive. But the next meaningful move may begin with something traders often overlook: the failure of a higher low.
After recovering from the 4,073 region, XAUUSD developed a short-term bullish structure supported by an ascending trendline.
Now, price is trading around 4,176, where buyers face another critical structural test.
Market Structure — Is Bullish Momentum Weakening?
The recent recovery has produced a sequence of higher lows, but Gold has struggled to establish sustained bullish continuation above the latest resistance area.
The ascending trendline remains important.
A break below it would be an early warning. A confirmed shift toward lower highs and lower lows would provide stronger evidence of a bearish correction.
Bearish Scenario — A Deeper Pullback?
If Gold loses its rising structure and fails to reclaim the broken area, the first significant downside reference is 4,138–4,148.
This region represents a potential support and retest area.
A temporary bounce from that zone would not necessarily invalidate the bearish scenario.
If buyers fail to establish a new higher high and sellers regain control, attention could shift toward 4,111.473.
Bullish Scenario — What Would Challenge the Correction?
If buyers defend the ascending trendline, maintain the higher-low structure and break above the nearby swing highs, the recovery could extend.
A sustained move through the 4,190–4,200 region would weaken the deeper bearish pullback scenario.
The Bigger Picture
Gold opened the week supported by declining US Treasury yields, while Federal Reserve policy uncertainty remains an important market factor.
However, macroeconomic support does not eliminate the possibility of a technical correction.
A trendline break is a warning. A confirmed change in market structure is the stronger signal.
Would you wait for a confirmed lower low, or consider a failed trendline retest enough to question Gold's bullish structure?
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Target Reached — Plan Completed
Gold followed the anticipated bearish direction, breaking below the ascending trendline and extending into the marked 4,138–4,148 target zone. Price has since reached approximately 4,136, confirming that the projected downside objective has been met.
The recovery lost structural support, and the subsequent decline delivered the move outlined in the plan. With the target reached, this setup is now complete and concluded here.
Any further movement will require a fresh assessment of market structure and a separate plan.
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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.