#GateSquareMayTradingShare

Gold's Attempt to Recover, But Sellers Still Lead the Market

Gold made an attempt to recover during the Asian trading hours, moving up from the $4,500 mark after touching a one-month low. However, this recovery doesn't seem to have much going for it. We don't see any obvious reason for this upward move, and usually, in the current big-picture economic situation, slight upturns like this often get sold off.

Looking at the overall situation, nothing fundamental has really shifted. The situation between the US and Iran is getting more tense again, particularly near the Persian Gulf. News about attacks on ships and damage near Fujairah has caused oil prices to climb. This directly fuels worries about inflation, which is currently the main concern.

When people expect higher inflation, it changes what they think will happen with interest rates. The market is quickly adjusting its predictions for a Fed rate increase, going from less than 10% to about 35% in only a few days. That's quite a significant jump. Higher expectations for rates push up US bond yields and strengthen the dollar, and both of these things usually work against gold.

Also, as global political risks increase, people tend to flock to the US dollar as a safe place to put their money. So, while gold is also seen as a safe haven, it looks like the dollar is getting most of that money right now. This is why gold's potential for going up isn't very high.

When we look at the trading structure, nothing really fundamental has shifted.

If you look at the 4-hour chart, gold is clearly still moving downwards. It's showing lower highs and lower lows, which is a classic sign of a market going down. The downward trendline is still holding firm, and it keeps pushing the price down.

Currently, the price is hovering around 4535, sitting just above the support area between 4500 and 4515. It did react a bit when it hit that level, but the move isn't strong enough to reverse the overall direction.

We're seeing strong resistance between 4545 and 4560, and that's an important zone to keep an eye on. Should the price reach this area and then fall back, it could signal another chance for a short trade. Beyond that, the next significant selling pressure would likely be found between 4615 and 4650.

If the price drops below 4500, there's not much stopping it from heading towards 4425 and then 4390. If that downward movement picks up speed, 4155 could become the next target over a longer period.

Most of the indicators are still pointing to a bearish outlook. This slight rebound doesn't seem very strong; it appears more like a brief halt rather than a change in direction.

Ultimately, the trend is still clearly downwards. Unless the price manages to break and stay above 4560, any increases will probably be met with selling.

$XAUT ‌