Gold Slips Below $4,100 as Risk Sentiment and Technical Signals Point to Deeper Correction

Gold prices remain under pressure early Monday, trading below the $4,100 mark despite recovering slightly from intraday lows. The precious metal is navigating a complex landscape shaped by shifting macroeconomic sentiment and technical headwinds.

Renewed optimism surrounding US-China trade relations has sparked risk-on flows across global markets, reducing demand for traditional safe-haven assets like gold. Investors are also positioning ahead of the upcoming Federal Reserve meeting, with dovish expectations weighing on the US Dollar. Despite the greenback’s mild retreat, rising US Treasury yields—driven by easing geopolitical concerns—continue to challenge gold’s upside momentum.

From a technical standpoint, gold faces renewed downside risk. A Bear Cross formation on the 4-hour chart, coupled with a bearish Relative Strength Index (RSI), suggests that momentum may favor sellers in the near term.

Key Market Dynamics:

• Gold trades below $4,100 early Monday, off session lows.
• Risk appetite rises on US-China trade optimism ahead of key diplomatic talks.
• US Dollar weakens on dovish Fed expectations, but Treasury yields climb.
• Technical indicators point to potential further downside: Bear Cross and bearish RSI on 4H chart.

As traders recalibrate their positions ahead of the Fed’s policy decision and monitor developments in US-China negotiations, gold may continue to face volatility. The next few sessions could prove pivotal in determining whether this correction deepens or stabilizes.