Gold is testing $4,000 after slipping below its daily trend band. A break of that support points first to $3,920, then to $3,600, where two technical references converge. Higher Treasury yields are weighing on bullion.
Gold is testing $4,000 after slipping below its daily trend band. If support breaks, $3,920 is the first downside target, and below it $3,600 could offer the next meaningful bounce.
Resistance sits at $4,100 and $4,200
The immediate hurdle is $4,100, around the 20-day exponential moving average. A rebound toward 4,100–4,200 that fails to hold above the band would keep sellers in control. Losing $4,000, however, would expose $3,920, the measured target of the smaller head-and-shoulders pattern.
Reclaiming the band and holding above $4,200 would weaken that bearish setup.
Why $3,600 could attract buyers
If $3,920 breaks, $3,600 is the next major area to watch. A historical consolidation zone and the anchored VWAP drawn from gold's October 2022 low both sit there.
That alignment with former trading activity makes $3,600 a plausible area for buyers to defend, rather than simply another round-number target. A bounce from that level would be an initial reaction, not proof of a trend reversal. Gold would still need to reclaim and hold above its daily 20 EMA band to confirm improving momentum.
Higher yields pressure bullion
Sticky inflation and higher oil prices have kept pressure on bonds, while TLT, which tracks long-dated US Treasuries, has been getting the bid in the last 3 weeks. Gold pays no interest, so when Treasury yields rise, holding it becomes less attractive relative to yield-bearing assets.
That helps explain why bullion can weaken even when geopolitical tensions would normally support safe-haven demand.
What would change the outlook
A bounce that stalls below the EMA band could form the right shoulder of a larger head-and-shoulders pattern. If that structure develops and breaks down, the 3,200–3,500 consolidation zone, centred near $3,350, becomes a possible longer-term target.
A sustained recovery above the daily EMA band and $4,200 would challenge that bearish path.
Source: Investing.com
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