Gold Falls Below $4,000 as Risk-On Sentiment Returns – Key Support at $3,950 in Focus

Gold opens the week under pressure 👋

Price has slipped back below $4,000, moving into the support zone we’ve been tracking for several sessions. A risk-on tone across global markets – driven by optimism around a potential US–China trade deal – has shifted flows into equities and out of safe-haven assets like gold, adding momentum to the downside.

👉 Last week, price failed to reclaim $4,060, and today we’ve seen a clean continuation of that weakness, with a move into the $3,950–$4,005 demand area.

Technical Snapshot

This demand zone has acted as support before, making it a natural decision point for traders. Here’s what to watch next:

• Hold & Bounce: If gold holds above $3,950–$4,005 and rebounds, structure stabilizes, and we could see a rotation back toward $4,170.

• Break & Sustain Below $3,950: Opens a path toward the MA-200 on the 4H chart, signaling a deeper correction phase.

For now, selling pressure remains controlled and fits within a broader corrective pullback on the daily timeframe.

Market Context

The shift to a risk-on environment is the main driver behind gold’s weakness.

• Trade optimism: Renewed US–China deal headlines boosted equities and risk assets.

• Bond yields firmed: Slightly higher yields reduced gold’s yield-free appeal.

• USD stable: A steady dollar added short-term weight against metals.

Despite this, gold’s broader structure remains intact – this pullback is corrective, not yet trend-breaking.

👉 You can practice analyzing multi-timeframe corrections like this in our Trading Simulator.

Key Levels to Watch

• Support zone: $3,950–$4,005 → current demand area.

• Resistance: $4,060 → last failed reclaim level.

• Upside trigger: $4,170 → breakout threshold for renewed momentum.

Above $4,170, buyers regain control. Below $3,950, sellers confirm continuation into the deeper trendline region.

Trader Psychology

Corrections like this separate structured traders from emotional ones. Many see a red candle and assume reversal – professionals see structure holding where it should.

Patience here is the edge. The level will decide, not opinion.

Bottom Line

Gold starts the week under pressure as optimism around US–China trade progress draws capital away from safe havens.

• Hold $3,950–$4,005 → potential bounce toward $4,170.

• Lose $3,950 → opens the path to the MA-200 zone on the 4H chart.

This remains a controlled pullback, not panic. Let structure dictate the next move – stay patient, stay reactive, and let the level do the talking. 👇

👉 Follow gold updates in Daily Insights and refine your macro-technical playbook inside the Trading Academy.

Disclaimer: This is not financial advice. All information is for simulation and educational purposes only.