UPDATE: Gold futures have just dropped to $4,187, plunging into bearish territory. The latest analysis from tradeCompass indicates that the bearish threshold is set at $4,194, while the bullish threshold starts at $4,207.7. This shift signals a critical moment for traders as market sentiment turns cautious.
Traders are advised to monitor the $4,188 to $4,194 zone closely for potential trading entries. As gold continues to languish below the critical threshold of $4,194, a short bias remains firmly in place. This is particularly urgent following a week marked by significant volatility in the gold market.
The recent decline follows an early week rally, as highlighted by Justin Low in his piece titled “Gold getting ahead of the curve?” where he noted a spike above $4,100 due to strengthening risk assets. However, that enthusiasm swiftly evaporated, as Adam Button reported in “Gold gives it all back and more,” with gold reversing sharply and returning to negative territory.
Eamonn Sheridan had previously warned of a potential triple top formation in gold, cautioning traders about the tightening technical picture. Today’s analysis emphasizes this bearish sentiment, with key intraday targets set at $4,178.8, $4,168.3, and $4,162.9.
Gold is currently positioned with a bearish lean. Any retracement into the $4,188 to $4,194 range could serve as a strategic orientation zone for short-side setups. Traders looking for early confirmation may choose to wait for clear rejection signals within this area.
The critical upper boundary at $4,207.7 marks where bullish strategies can begin to take form. The $4,200 level also remains a focal point, frequently mentioned in recent discussions, acting as a magnet for liquidity amidst the market’s fluctuations.
As the session unfolds, conditions may shift rapidly, with gold capable of moving from calm to aggressive trading within mere minutes. The roadmap for bearish trading is layered with downside profit levels, making it essential for traders to remain vigilant. Targets include $4,178.8, $4,168.3, and $4,162.9, which are commonly utilized by intraday traders for profit-taking strategies.
For those maintaining longer positions, extended bearish targets include $4,122.3, $4,091.5, with swing-focused levels at $4,035.8, $4,010.2, and $3,978.0. The vulnerability of gold continues to be a theme, as recent coverage has shown a persistent pattern of fading post-rally.
If gold manages to surpass $4,207.7, a bullish narrative will activate, with upside targets reaching $4,218.3, $4,233.8, and even $4,271.7. However, traders must heed Sheridan’s triple top warning, ensuring that any break above the bullish threshold demonstrates sustained commitment to avoid false signals.
Today’s technical analysis aims to serve as educational decision support, not financial advice. Trading gold—whether through futures, micros, or CFDs—carries substantial risk and may not suit all traders. Leverage can amplify both gains and losses. It is crucial to verify levels on your own charts, assess your risk tolerance, and consult a licensed professional as necessary. Remember, you trade entirely at your own risk.
