in_tradingview21d ago
Gold Faces a Deeper Weekly Pullback XAUUSD is entering next week under pressure, with the structure still pointing towards a deeper move into the 2.618 Fibonacci support zone. Gold ended the week on a heavy note after failing to hold above the rising trend structure that had supported the broader advance for months. The recent breakdown matters. What was previously a stable bullish trend has now shifted into a more vulnerable phase, with price slipping back below key Fibonacci support layers and losing upside momentum into the weekly close. From a broader perspective, this is no longer just a routine correction. The chart is starting to show a market that is unwinding a larger bullish leg, and unless buyers quickly rebuild structure above broken support, the downside path remains open into lower demand zones next week. Technical Structure On the higher timeframe, gold has already rejected from the upper extension area and rolled over sharply. The latest decline has pushed price below the rising trendline that previously held the bullish structure together, while the market is now trading back under the 0.382 Fibonacci region. That shift leaves the chart in a weaker position. The next key zone sits around 4,292, marked as the Fibonacci resistance area. This is the first level that would need to be reclaimed to reduce immediate downside pressure. But as long as price stays below it, the market still looks vulnerable to another leg lower. Below current levels, the more important downside target comes in around 4,131, which aligns with the 2.618 Fibonacci zone and the highlighted buy area on the chart. This is the area where stronger demand may begin to reappear if the sell-off continues next week. Key Price Zones Near-Term Resistance: 4,292 This is the first important level on the way back up. If gold cannot reclaim this zone, the bearish structure remains intact. Major Downside Target / 2.618 Fibonacci Zone: 4,131 This is the main level to watch next week. It is the deeper support area and the most likely downside destination if pressure continues. Broken Trend Support The loss of the previous ascending trendline is a major technical warning. Unless price can recover back above it, rallies may continue to be treated as corrective rather than a real bullish recovery. Weekly Scenarios Scenario 1 – Continue Lower Into 4,131 This is the primary scenario for next week. If gold remains below the broken support structure and fails to reclaim 4,292, the market may continue extending lower into the 4,131 buy zone. That would complete a deeper retracement into the 2.618 Fibonacci area and keep the current weekly pressure firmly on the downside. Scenario 2 – Short-Term Bounce, Then Resume Lower Gold may still produce a technical rebound early in the week, especially after such a sharp decline. But unless that rebound can reclaim and hold above 4,292, it would likely remain corrective. In that case, any recovery would simply reset price before sellers press the market lower again. Scenario 3 – Reclaim 4,292 and Stabilise This is the less likely scenario for now, but it cannot be ignored. If buyers manage to reclaim the 4,292 resistance zone and build acceptance above it, the immediate downside pressure would begin to ease. That would reduce the risk of a direct move into 4,131 and suggest the market is trying to stabilise after the breakdown. Still, this would need clear confirmation. At the moment, the chart does not support that view as the primary path. Market Insight Gold is heading into next week with a structure that has clearly weakened. The breakdown from trend support, the rejection from higher Fibonacci levels, and the inability to hold recent rebound attempts all point to a market that is still in correction mode. That does not mean price cannot bounce along the way, but it does mean the burden of proof is now on buyers. From my perspective, the market still looks vulnerable to a deeper move into the 2.618 Fibonacci zone near 4,131 before stronger support can be tested properly. For next week, the message is simple: unless gold can reclaim 4,292, the broader structure still favours another leg lower into deeper support.
