Selling gold to $3160 level

On hourly timeframes, gold is forming a reversal pattern resembling either a triangle or head-and-shoulders formation. The horizontal level at 3,260 acts as its base. A confirmed breakout below this level would signal a strong move toward 3,160. Gold’s decline is further supported by extremely overbought conditions on daily and weekly timeframes.

Fundamentally, gold's decline reflects passing the peak risk threshold, with markets pricing in expectations that conditions won't deteriorate further. Consequently, extreme demand for gold as a safe-haven asset is beginning to wane. For context, yesterday saw relaxation of auto tariff terms. The amendments provide automakers with loans covering up to 15% of domestically assembled vehicles' value. These measures may be applied to the value of imported parts, allowing time for supply chains to recover. This enables automakers to import duty-free parts worth approximately 3.75% of the domestic market price of vehicles they sell in the first year, and 2.5% in the second year. The exemption, effective retroactively from April 3, is being phased out in the third year to encourage companies to relocate parts production to the US.

Another key question is how long and how high gold prices will remain elevated, as while market risks have eased, they haven’t disappeared entirely. Consumer confidence sits near a five-year low, with business sentiment deteriorating. Many companies have withdrawn their 2025 financial guidance, citing uncertainty over tariff-related costs that economists warn will raise expenses for both businesses and households. Economists estimate GDP likely grew just 0.3% year-over-year last quarter – the slowest pace since the second quarter of 2022.

The overall recommendation is to sell gold from the 3,260 level.  

Profits should be taken at the level of 3,160. A Stop loss could be set at the level of 3,400. 

The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.