## Increasing Selling Pressure on XAU/USD: Gold Faces Challenge at the $4,400 Level

This week, **XAU/USD** is undergoing a strong correction with clear bearish signals. After failing to break above the $4,500 zone, the precious metal has experienced continuous selling pressure over the past two trading sessions. Currently, **gold** is trading around $4,428, and traders are focusing on the $4,400 threshold—a critical level in the current market environment.

### Market Sentiment Shifts: From Geopolitical Concerns to Economic Data

A notable change has occurred in investor sentiment. Concerns over geopolitical situations in Venezuela, China, Iran, and Greenland seem to have temporarily lost their appeal. Instead, market attention has shifted to the upcoming U.S. Non-Farm Payroll report, a key indicator of how the Federal Reserve will handle monetary policy.

### Technical Indicators Signal Caution

From a technical perspective, the outlook for **XAU/USD** is not positive:

- **RSI drops below 50**: The Relative Strength Index has moved into the bearish zone, indicating a significant shift in market momentum
- **MACD turns negative**: The MACD line crosses below the Signal line, confirming weakening trend
- **Lower highs forming**: Daily price structure shows successive lower highs, a classic bearish market sign

The $4,400 level is particularly significant as it coincides with the 100-day (SMA), a support level that has held since mid-November. This area also aligns with the peaks from December 31 and January 2.

### Breakout Scenarios and Next Targets

If **gold prices** fail to hold the $4,400 support, the next downside targets are around $4,309 (the low from January 2) and even $4,270 (the lows from December 16 and 31). Each of these levels could serve as potential stopping points for investors.

Conversely, for a bullish recovery, **XAU/USD** needs to regain the $4,500 zone and sustain above it. The peak from Tuesday near $4,500 would be the starting point, but the real threat remains until gold can control the $4,449 level—its all-time high reached on December 26.

Currently, the trend favors sellers, and any rebound could present an opportunity for them to increase pressure.

_(This analysis is supported by AI tools)_