Support Breakdown Strengthens Bearish Pressure
Bearish implications for gold have increased this week as Monday’s break below a key support zone confirmed a renewed shift in control to sellers. The larger bearish correction is therefore reasserting itself. The recent low of $4,235 had established support near the 61.8% Fibonacci retracement level, but both levels failed to hold on Monday. Aggressive selling followed the breakdown, with the next lower potential support zone also failing to hold.
That zone included the prior swing high of $4,203, which previously served as key resistance for the bottom consolidation range, as well as a short-term uptrend line, and the lower boundary of a falling wedge pattern that never confirmed. The failure of this confluence of support adds further weight to the bearish breakdown.