GOLD – Bears reclaim control, eye key support levels for next move

Gold extended its decline for a third straight session on Thursday, pressured by a stronger U.S. dollar and renewed optimism surrounding progress in U.S.–EU trade negotiations.

Bears regained control following a double rejection and failed breakout above the descending trendline drawn from the \$3500 record high through the June 16 lower top at \$3452. This rejection, coupled with the formation of a bearish engulfing pattern on the daily chart, delivered a fresh bearish signal.

The selloff accelerated, dragging prices down more than 2.5% over the past three days and retracing over half of the recent \$3246–\$3438 rally. The decline has approached a key support zone at \$3342 (50% Fibonacci retracement, reinforced by the 20-day moving average), and now nears critical support at \$3330—the top of the daily Ichimoku cloud, which has been underpinning the broader uptrend since mid-January and repeatedly cushioned previous pullbacks.

A firm break below the cloud and nearby support at \$3320 (trendline support and 61.8% Fibonacci retracement) would undermine the broader bullish outlook and open the door toward the \$3300/\$3290 area (psychological level and 76.4% retracement).

Technical signals on the daily chart have weakened: 14-day momentum is testing the centerline and eyeing a break into negative territory, while price has moved below both the 10- and 20-day moving averages. Additionally, the weekly chart is forming a Gravestone Doji, reinforcing the bearish bias and suggesting sellers are gaining control.

Nonetheless, all eyes remain on the Ichimoku cloud top at \$3330—a key structural support that could again limit downside attempts and prevent a deeper correction, at least in the near term.

Res: 3350; 3365; 3374; 3393
Sup: 3330; 3320; 3309; 3300