Gold prices continued to decline sharply during Wednesday’s trading session, losing more than 1% and falling to their lowest level in 11 weeks. Selling pressure intensified as both the U.S. dollar and oil prices moved higher following renewed tensions between the United States and Iran. This raised concerns over a potential rebound in inflation and strengthened expectations that the U.S. Federal Reserve could maintain a tighter monetary policy stance in the near term.

As of 02:30 GMT, spot gold was down 1.8% at USD 4,187.59 per ounce, marking its lowest level since March 23.

Technical Analysis: The Bearish Scenario Is Becoming Clearer
Gold’s downward trend is becoming increasingly reinforced as prices continue to break below key support zones. Although the full bearish wave structure has not yet been completely confirmed, short-term price action indicates that sellers remain in control of the market and continue to hold a clear advantage.

If selling pressure continues to persist, gold prices are highly likely to move toward the strong support zone around USD 4,100 per ounce. In a more negative scenario, the market could even see gold return to trading below the psychological threshold of USD 4,000 per ounce.

Conclusion
The current downtrend has yet to show clear signs of ending, and the short-term outlook remains tilted to the downside. Investors should closely monitor movements in the U.S. dollar, the Federal Reserve’s interest rate policy, and geopolitical developments to assess the possibility of gold extending its decline toward the USD 4,100 per ounce zone or even lower in the near term.

Ebila AI continuously updates market developments by combining both fundamental and technical factors, helping investors gain a more comprehensive perspective and make more effective decisions.

If you find Ebila AI’s analysis useful, please share this article so more people can gain a clearer and more accurate view of the market.

All information related to trading in financial markets provided on this website is intended solely for research and educational purposes and should not be considered a specific investment or business recommendation. It also does not constitute an analysis of investment opportunities or a general recommendation related to the trading of investment instruments.