Sell gold with $3,980 target during brief rebound

Gold prices are currently making modest attempts at recovery following this week’s steep decline. XAUUSD is not giving up, clinging to $4,090, but bears remain in control. Technical indicators show no signs of a trend reversal.

On the daily chart, Bollinger Bands show that prices breached the lower limit of the channel, located near $4,205. The metal has remained below this threshold for several consecutive sessions. What does this mean? Strong momentum and heightened volatility.

The Moving Average of Oscillator (OsMA) aligns with the bearish picture. One of the most pronounced downward moves seen recently occurred on June 10, indicating that selling pressure peaked. However, the OsMA has yet to show a sustained recovery—a development that typically precedes stabilization or reversal—confirming that bearish momentum remains intact.

The On-Balance Volume (OBV) Indicator also suggests that sellers are in the driver’s seat. Following a period of sideways movement from May 29 to June 8, the OBV dropped sharply, coinciding with the price decline and confirming significant distribution. The indicator’s modest growth during today’s session reflects investors’ intention to close short positions in the near term and local demand near $4,000. But there are no signs of steady capital inflows.

Fundamental factors complete the technical setup. The US Consumer Price Index (CPI) for May climbed to 4.2% year-over-year—the highest level in three years. As a result, market expectations of a December rate hike by the Federal Reserve (Fed) jumped above 70%. This environment is quite toxic for the precious metal.

Consider the following trading strategy:

Sell gold during a rebound to the $4,100–$4,120 range. Place Take profit at $3,980. Set Stop loss at $4,200.

This forecast remains relevant between June 11 and June 18, 2026.