Gold market analysis

"Gold price at $4,410 offers strong short-term support" – Completed on May 20, 2026, 9:41 AM  
After yesterday's spot gold price fell below the lower boundary of the hourly chart's dense zone around $4,530, it sharply dropped to $4,464.91 before rebounding. However, resistance remains above $4,500. A test of $4,480 on the hourly chart and the formation of a double-bottom pattern are also expected developments. On the daily chart, gold closed below the May 4 low of $4,500.85, signaling a downward breakout. If gold fails to hold above $4,500 by the end of this week, the likelihood of further downside increases. 

If we measure the price movement since April 17 using Fibonacci extension levels, with a 100% retracement, gold is expected to fall to $4,384.98. I believe this level will provide strong support, especially from a Gann Square perspective—$4,410 lies at the 270-degree vertical angle. The aforementioned target slightly tests this level. Since prices at "cross points" represent strong support (or resistance), if gold approaches $4,410, it would be prudent to consider buying rather than shorting. The only reason to maintain a bearish outlook would be if gold clearly breaks below $4,410; in that case, the next key support level would be $4,210. 

As seen on the hourly chart, yesterday's gold price showed a divergence between the price and the 9RSI, forming a double bottom pattern. This morning, after rebounding to $4,500 and encountering resistance, prices sharply declined, briefly breaking below $4,460. On the more optimistic side, gold may form a minor double bottom and subsequently rebound; otherwise, it is likely to test lower toward $4,410, which is expected to become a strong short-term support level, while $4,660 remains a key resistance. The immediate resistance zone lies between $4,500 and $4,530. Based on short-term cyclical patterns, gold still has potential to initiate a rebound today. Otherwise, a stronger upward move is expected only after hitting a bottom this Friday. 

The above content is for reference only and does not constitute investment advice.