News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Gold’s Toughest Period Is Over
Summary:
After multiple negative shocks, the most severe phase of the liquidity squeeze in the precious metals market has basically ended, and there may be a short-term trading opportunity for a bottoming rebound.
Buy
TradingXAUUSD
EXP
4450.72
Entry Price
5200.00
TP
3996.00
SL
4414.86 +8.51 +0.19%
0
Point
Flat
3996.00
SL
CLOSING
4450.72
Entry Price
5200.00
TP
Fundamentals
Gold prices previously fell in disorder amid a liquidity tightening backdrop and are now showing initial signs of stabilization around USD 4,099. Although the major central banks, including the Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan, all delivered hawkish signals over the past week, which initially weighed on gold, this round of losses clearly went beyond a simple “fundamental repricing” and should be viewed more as a liquidity shock caused by a market structure imbalance.
After gold successively broke below key psychological levels at USD 5,000, USD 4,600 and USD 4,400, margin calls on leveraged positions were triggered at an accelerated pace, leading to large-scale forced liquidations. As forced selling continued to intensify, the market saw a classic liquidation cascade on Monday, further distorting prices. The main driver in this phase was not macro logic, but structural factors tied to de-leveraging and liquidity exhaustion.
At the same time, gold ETFs saw significant outflows, with holdings being redeemed on a large scale, reflecting that institutional investors were actively reducing risk exposure. Notably, USD did not strengthen in sync during this selloff; instead, it softened, which further reinforced the view that liquidity pressure, rather than the traditional USD-driven logic, was dominating the move.
As the passive de-leveraging process gradually completed, selling pressure eased noticeably. By the European session, gold stabilized above USD 4,160, suggesting that the most extreme stage of the selloff may already be over. As the market returns to a macro pricing framework, prices may enter a repair phase.
Technical Analysis
From a technical structure perspective, gold rebounded quickly after touching USD 4,099 intraday, showing that short-term bearish momentum has already been released. This area also corresponds to the starting zone of the second rally cycle since late August last year, giving it some structural support significance.
A rapid downside probe followed by a strong rebound is a typical sign of a liquidity bottom, usually indicating that the market has completed a concentrated clearing-out phase. Current price action suggests that a short-term bottom is highly likely to have formed.
On the rebound path, gold may gradually retrace the losses caused by the liquidity squeeze, with the initial upside target focused on the previous heavy selling zone around USD 5,200.
Overall, the market has moved from a passive de-leveraging phase into a price-repair phase. With selling momentum clearly fading, the preferred strategy is to buy on dips and look for pullback-based entry opportunities.
Trade Recommendations
Trade Direction: Buy
Entry Price: 4300
Target Price: 5200
Stop Loss: 3996
Valid Until: 2026-04-22 23:55:00
Support: 4562 / 4489 / 4403
Resistance: 4687 / 4760 / 4839
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.