Gold Remains Under Pressure as the 4H Downtrend Continues

Gold continues to trade under clear selling pressure on the 4-hour timeframe, with price action still respecting the descending trendline that has controlled the market since the strong rejection from the 5,500 area earlier this year.

From a technical perspective, XAUUSD is currently struggling below the key resistance zone around 4,850, while price is now trading near 4,611 after another wave of bearish momentum. The market failed multiple times to break above the descending resistance line, which confirms that sellers are still dominating the short-term direction.

What also stands out technically is the structure of lower highs and weak recoveries during every bullish attempt. This usually reflects cautious sentiment from buyers, especially when momentum starts fading near resistance areas. If gold remains below the 4,850 resistance zone, the market could continue targeting lower levels toward 4,500 and potentially deeper support zones if bearish momentum accelerates.

On the fundamental side, the pressure on gold is also connected to the current strength in the U.S. Dollar and the market’s reaction to global political developments. Investors are still watching the ongoing tensions between the United States and Iran, but unlike previous periods where geopolitical fear pushed gold aggressively higher, markets now appear more focused on inflation expectations, oil prices, and monetary policy direction.

Higher oil prices continue creating concerns about inflation stability, yet at the same time, expectations that central banks may keep interest rates elevated for longer are supporting the dollar. This environment usually creates pressure on gold because stronger yields and a stronger dollar reduce the attractiveness of non-yielding assets like gold.

In my view, gold is currently moving in a sensitive phase. The long-term trend still carries strong bullish potential, especially if geopolitical risks increase again or inflation returns aggressively. However, on the medium-term and short-term structure, the 4H downtrend remains dominant until buyers can clearly reclaim the 4,850 resistance area and break the descending trendline with strong momentum.

For now, traders should continue watching price behavior carefully around key support and resistance levels because volatility remains very high across commodities and safe-haven assets.

Prepared by: Motasm Adel,

Senior Market Analyst – OneRoyal

Risk Disclaimer: Trading involves significant risk and may not be suitable for all investors. The information provided in this article is for educational and analytical purposes only and should not be considered investment advice.