#GoldSeesLargestWeeklyDropIn43Years

Gold Under Pressure: Hawkish Policy Outlook Drives XAUT Into Bearish Breakdown

Gold is continuing its decline for the third week, dropping to new lows near $4,300 during the Asian session. The overall outlook is weak, pressured by central banks’ tighter policies, while geopolitical tensions provide only limited support.

On the fundamental side, major central banks have taken a clearly hawkish stance. The Bank of Japan is moving toward normalizing policy, the Bank of England hints at possible rate hikes as soon as April, and the European Central Bank stands ready to act if inflation rises further. Meanwhile, the Federal Reserve has raised its inflation forecast and now expects fewer rate cuts, which keeps US Treasury yields high and the dollar strong. These factors continue to weigh on gold, which doesn’t offer yield.

Geopolitical issues contribute some support. Rising friction between the US and Iran, especially near the Strait of Hormuz, is maintaining some safe-haven demand. However, this support isn’t strong enough to reverse the downtrend, only to slow it.

Looking at the technical picture, XAUT/USDT on the 4-hour chart is clearly bearish. The price has broken below its previous range and is forming lower highs and lower lows. Losing the 4,500–4,400 support zone confirms the downtrend, with current levels around 4,300.

The price sits below both the 50-day and 200-day EMAs, which are sloping down, reinforcing bearish control. Momentum remains weak without signs of bullish reversal, so sellers still dominate.

Key resistance sits between 4,600 and 4,700, where short-term pullbacks may face selling pressure. Above that, 4,900 to 5,000 marks a significant supply area, with stronger resistance from 5,150 to 5,250. On the downside, immediate support is around 4,250 to 4,300, with stronger buying interest expected near 4,000 to 4,100.

If the price can’t stay above 4,300, it likely will move down toward 4,100 or even 4,000. Any short-term rally up to 4,600–4,800 should be viewed as a potential chance to sell unless the price breaks and holds above 5,000.

In summary, the trend remains clearly bearish. The market is in a phase of selling on rallies, and a change in direction will only happen after a confirmed base or reversal pattern forms.

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