Yesterday’s U.S. session gold price plunged decisively below the crucial $4,000 psychological level. The resilience of U.S. employment data, together with a collective release of hawkish remarks from Fed officials, led the market to push back expectations for rate cuts. The dollar and U.S. Treasury yields both rose in tandem, while non-yielding gold faced sell-offs. Meanwhile, the Middle East situation boosted oil prices; worries about inflation rebounding supported high interest rates. Safe-haven funds flowed into the dollar, undermining gold’s safe-haven role. Long-term central bank gold buying provides some bottom support, but ahead of Friday’s weekly close, near-term bearish positioning remains dominant.

The chart saw four consecutive large bearish candles. Gold is under pressure below moving averages across all timeframes, with a clear bearish trend. Indicators being oversold suggest the market will likely continue to trade in a range with a downward drift. Trading is mainly to go short on rallies: short on rebounds at 4018–4025, targeting 3970–3940; only if it retraces to 3940–3960 and stabilizes can traders take a small long position. Stop loss is below 3935, with upside toward the $4,000 level.