FX.co ★ Silent-person | XAU/USD, GOLD

Support Levels The primary support zone is located at 4231.85 – 4279.15, which represents the recent swing low region. The level 4279.15 is the higher end of this cluster, while 4231.85 is the ultimate line of defense shown on the chart. A secondary support lies at 4302.80, which previously acted as a reaction point during the descent. Given the downtrend from 4444.70 down to 4231.85, any bounce from this zone must hold above 4231.85 to prevent further losses toward 4200.00 (not shown but implied). The level 4326.45 also offers minor support. Resistance Levels The most significant resistance is at 4444.70, which is the swing high and the primary bull barrier. Below that, 4421.05 and 4397.40 form the immediate resistance levels. The cluster around 4352.20 – 4365.21 (including 4356.15 and 4352.20) is the near-term ceiling – if price can reclaim above 4365.21, the first target for buyers would be 4373.75. The level 4397.40 is an intermediate resistance that price must clear during any corrective bounce. Until price breaks above 4365.21, the broader trend remains bearish. Trading Plan Given the clear downtrend and price trading near the lower end of the range, two approaches exist. For aggressive traders, a long bounce can be attempted on a confirmed hold above 4326.45 with a stop loss below 4302.80 (e.g., at 4295), targeting 4352.20 and then 4365.21. For trend-followers, the preferred strategy is to wait for a pullback to 4397.40 – 4421.05 and enter short, with a stop loss above 4444.70, targeting a retest of 4365.21 and then 4352.20. A break below 4231.85 would signal further downside toward 4200.00. Risk to Reward Ratio For the short setup: assuming an entry at 4397.40, a stop loss at 4425 (27.6 points risk – Gold: 1.0 = 1 point), target at 4365.21 gives 32.19 points reward (4397.40 - 4365.21 = 32.19), yielding a 1:1.17 risk-to-reward ratio. Target at 4352.20 gives 45.2 points reward, yielding a solid 1:1.64. For the long setup at 4326.45 with a 23.65-point stop (to 4302.80) and first target at 4352.20 (25.75 points reward), the ratio is 1:1.09, improving to 1:1.64 to 4365.21 (38.76 points reward). The short on strength offers slightly better numbers for larger targets. Summary Gold on the H1 timeframe is in a downtrend, having fallen from 4444.70 to the current support zone at 4231.85 – 4279.15. The bias remains bearish as long as price stays below 4365.21. Traders can either buy the bounce near support for a scalp to 4352–4365, or wait for a retrace to 4397.40 – 4421.05 to enter short targeting the lows. A decisive break below 4231.85 would accelerate selling toward 4200.00, while a break above 4444.70 would be needed to question the downtrend. For now, buying near support offers a favorable risk-reward for a corrective bounce.