Gold Extends Decline Amid Rising Risk Appetite

Gold Extends Losses as Risk Appetite Grows on US-EU Trade Hopes

Gold prices fell for a second consecutive session, pressured by improving risk sentiment driven by rising optimism over a potential US-EU trade agreement, which continues to weigh on safe-haven demand.

The latest wave of weakness followed a failed attempt by bulls to decisively break above the trendline resistance, marking the upper boundary of a triangle pattern on the daily chart. The quick retreat below this trendline signaled a false breakout and triggered a bearish reversal signal.

Since Wednesday’s open, the yellow metal has declined nearly 2%, breaking below a key support zone around $3365. This level marks the 38.2% Fibonacci retracement of the $3246–$3438 rally and is reinforced by the 10-day moving average. A sustained break below this support would confirm the reversal, especially after Wednesday’s bearish engulfing pattern and close beneath the psychological $3400 level.

While daily technical indicators have weakened, they remain broadly positive, indicating that the broader uptrend is still intact—provided that prices hold above the top of the Ichimoku cloud at $3330. Maintaining this level would preserve the medium-term bullish structure.

Conversely, a clear drop below the cloud top and the nearby triangle support at $3317 would generate a stronger bearish signal, increasing the likelihood of deeper downside movement.

Key Levels:

• Resistance: 3393, 3400, 3419, 3438

• Support: 3342, 3330, 3317, 3309

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