Blue Marble Education: Review news for historical performance reference only. Events can cause high volatility.
Last week, gold experienced a significant shift in momentum after reaching fresh highs near 4,155. Following several weeks of aggressive buying, sellers stepped into the market, triggering a sharp correction that pushed prices back toward the 4,040–4,060 region.
While the long-term trend remains bullish, the recent price action shows that the market is entering a correction phase rather than continuing its strong upward momentum.
The week began with buyers firmly in control. Gold continued its bullish structure, producing a series of higher highs and higher lows before reaching a new swing high.
However, once price tested the resistance zone around 4,150, momentum quickly faded.
Instead of continuing higher, sellers entered aggressively, producing several consecutive bearish candles. The strongest move came with a large bearish impulse candle, signalling that market participants were taking profits and new sellers were entering the market.
This move erased much of the previous rally and shifted short-term market sentiment from bullish to neutral.
The most notable feature of last week's chart was the large bearish impulse leg. This candle:
After the sharp decline, gold stopped making lower lows. Instead, price began moving sideways between approximately:
This consolidation suggests the market is deciding whether to continue lower or resume the larger uptrend. Neither buyers nor sellers currently have full control.
Although the 4-hour chart has weakened, the larger market structure remains bullish. Until gold begins creating lower highs and lower lows on higher timeframes, this move can still be viewed as a healthy correction within a broader uptrend.
Bullish Scenario:
Buyers would like to see:
This would suggest that the correction has finished and the primary uptrend is resuming.
Bearish Scenario:
Sellers remain in control if:
That would indicate the correction still has room to continue.
Last week's movement highlights an important trading lesson:
Gold remains one of the strongest markets in 2026, but last week's price action reminds traders that momentum can change quickly after extended rallies.
For now, patience is key. The market is consolidating after a sharp sell-off, and the next breakout from the 4,040–4,065 range could provide the next significant learning opportunity. As always, let price action confirm your directional bias rather than predicting the next move.
