Gold Rejects 4,700 Zone Again: Sellers Regain Control as Momentum Weakens

Commodity

Summary:

Gold (XAU/USD) is trading around the 4,690–4,700 region after a strong recovery rally earlier this week. The rebound was supported by weaker USD and easing geopolitical fears, but price is now approaching a major resistance cluster where profit-taking pressure is increasing....

SELL XAUUSD

EXP

PENDING

4690.00

Entry Price

4620.00

4745.00

4716.59 +25.83 +0.55%

Pips

PENDING

4620.00

Exit Price

4690.00

Entry Price

4745.00

Market Overview

Gold is currently fluctuating near 4,696 after surging almost 3% during the previous session, reaching the highest level in more than a week. The rally was largely fueled by a weaker US Dollar and optimism surrounding possible de-escalation between the US and Iran, which reduced inflation expectations tied to oil prices.

However, despite the strong rebound, gold is still trading well below its January record highs above 5,300, showing that the broader medium-term structure remains fragile. The 4,690–4,700 zone is technically important because previous rallies repeatedly failed around this region. Historical resistance near 4,690 has already triggered significant corrections earlier this year, making it a major supply zone.

As a result, current price action increasingly resembles a technical recovery rally rather than a confirmed bullish continuation breakout.

Market Sentiment

Market sentiment is shifting from aggressive bullish recovery toward cautious profit-taking. The sharp rebound earlier this week forced many short sellers to exit positions, but fresh institutional buying above 4,700 remains limited.

At the same time, traders are becoming increasingly cautious ahead of upcoming US labor and inflation data, which could reinforce the Fed’s higher-for-longer stance. This remains structurally bearish for non-yielding assets like gold.Importantly, geopolitical risk is no longer driving panic buying into gold as strongly as before. Recent stabilization in Middle East tensions reduced urgency for safe-haven flows, weakening one of the strongest bullish catalysts behind the rally. This creates an environment where upside momentum slows while short-term sellers begin re-entering near resistance.

Technical Analysis

Gold Rejects 4,700 Zone Again: Sellers Regain Control as Momentum Weakens_1

On the M15 timeframe, XAU/USD is showing signs of exhaustion near the 4,690–4,700 resistance zone. Bollinger Bands (20,2) expanded aggressively during the rebound but are now beginning to flatten, indicating fading momentum after overextension.

Price is repeatedly rejecting the upper Bollinger Band instead of sustaining breakout continuation, which often signals weakening bullish strength.IKH (9,26,52) shows Tenkan-sen flattening while price struggles to maintain distance above Kijun-sen. The future cloud remains relatively thin, reflecting uncertainty rather than strong bullish continuation.

Stochastic (5,3,3) is entering overbought territory and beginning to curl downward, signaling a potential short-term momentum reversal.Key resistance now stands at 4,700 and 4,735, while support lies at 4,640 and deeper near 4,580. Failure to break sustainably above 4,700 increases the probability of another corrective move lower.

Trade Recommendation

Entry: 4690

Take Profit: 4620

Stop Loss: 4745

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