Gold Prices Dive Below $4900 — Key Technical Outlook and Trading Plan
Gold experienced a sharp and unexpected decline in today’s trading session, losing more than 2% and falling below the critical $4900 level. Spot gold dropped to $4893, wiping out nearly $100 in value within hours. The sudden sell-off reflects increasing uncertainty in global markets, a shift in monetary policy expectations, and strong movements in bond yields and major currencies.
Gold futures witnessed an even steeper decline, falling 2.7% to around $4909 per ounce, signaling aggressive profit-taking and a clear lack of bullish momentum.
Technical Outlook – 5-Hour Chart
Spot gold XAU/USD is currently trading near $4,892.56 on the 5-hour time frame, which shows a strong bearish trend dominating the market. The chart structure reveals consecutive lower highs, weakening bullish attempts, and increasing downward pressure.
Key Levels to Watch
Major Support at $4,841
This level is the barrier between a temporary correction and a deeper decline.
– A confirmed break below this support may accelerate a drop toward $4,780 – $4,720.
– Increased sell volume below this level reinforces the bearish trend.
Heavy Resistance Levels Above the Current Price
Any upward bounce is considered high-risk, as price faces stacked resistance at:
– 4,920
– 4,965
– 5,000 (strong psychological barrier)
Failure to break these resistances adds further pressure on buyers and maintains bearish dominance.
Why Gold Dropped Sharply
– Strengthening US dollar
– Rising US Treasury yields
– Volatility in major financial markets
– Preference shift from metals to cash assets
– Large-scale selloffs after breaking key support levels
Trading Plan After Gold Fell Below $4900
The bearish direction remains the safer approach for traders, given the strong negative momentum.
Scenario 1 – Sell Breakout Below $4,841
– Enter a short position after a clear breakout candle.
– Target 1: $4,780
– Target 2: $4,720
– Stop-loss: Return above $4,900
Scenario 2 – Sell from Resistance Levels
If gold retraces upward:
4,920 – 4,965 – 5,000
These can be ideal zones for selling opportunities.
– Stop-loss: Above $5,020
– Targets: $4,880 – $4,840
Scenario 3 – High-Risk Buy Setup
Buying is not recommended unless strong reversal signals appear above $4,841, supported by increasing trading volume.
Conclusion
Gold remains under intense selling pressure after breaking the $4900 barrier. The market outlook favors continued downside movement unless buyers regain control above the $5,000 level.
At the moment, selling strategies remain the most realistic approach, while buying positions carry increased risk.
