Gold suffered a significant decline two weeks ago, falling approximately 20% from its all-time highs. Such a sharp liquidation is not unusual in commodity markets, particularly given the elevated volatility seen in recent months. Commodities tend to move aggressively in both directions, and gold is no exception.
At the moment, the US dollar is approaching a major support zone. If the dollar stages a recovery and US yields begin to stabilize, precious metals could remain under pressure and continue trading within a broader corrective structure. From an Elliott Wave perspective, this would be entirely consistent with the current technical picture. The decline from the all-time highs appears to represent only the first leg of a higher-degree correction.
Gold previously found temporary support in the 4200–4400 region, which triggered a rebound. However, the recovery so far looks corrective in nature — potentially forming a wave B, as indicated on the 4-hour chart. If this interpretation is correct, the current bounce may be limited in scope.
Following this rebound, further downside could still be expected before the correction fully matures. In the near term, the 5200 level stands out as a key resistance zone to monitor. Price rejection from that area would strengthen the view that gold remains in a broader corrective phase rather than resuming its primary uptrend.
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