Gold Price Breaks Below Key Support Zone

The gold price has been under bearish pressure as it broke below a key support zone on Monday. This breakdown confirmed a shift in control to sellers, leading to a larger bearish correction.

The recent low of $4,235 had established support near the 61.8% Fibonacci retracement level, but both levels failed to hold on Monday. The aggressive selling that followed indicates a strong downward trend.

The breakdown also included the failure of a confluence of support zones, including the prior swing high of $4,203 and a short-term uptrend line. This adds further weight to the bearish breakdown.