The gold market (XAUUSD) entered the current trading week in increasingly depressed technical conditions, with the price structure showing a clear shift from a bullish to a distributional phase. The recent price action shows an inability to sustain momentum at the previous highs, thus forming the basis for a bearish bias in the near term.
From a price level perspective, the main resistance zone is currently concentrated in the area around $4,850 to $4,920. This area is seen as a zone where price pressure often appears, thus forming a dynamic barrier to any bullish attempt.
Meanwhile, the nearest support level is around $4,700 to $4,650. This zone is a critical area as it represents the floor to the current price movement. If the pressure continues and this level fails to hold, the price structure has the potential to move towards lower support
In the context of the weekly timeframe, an “inside week” formation is also observed, indicating a phase of volatility reduction and pressure accumulation before a larger move occurs. This situation usually depicts the market waiting for a clearer direction, but in the current structural situation, the pressure will remain dominant as long as the price is unable to overcome the main resistance zone again.
Overall, the current technical picture of gold shows a significant transition phase. The weak price structure, as well as the existence of a solid resistance zone at the top, indicate that the market has not yet shown signs of a strong recovery. The mentioned price levels are an important reference in assessing the continuity of the market structure in the near term.
