Selling gold down to 3050 level

Gold is forming a remarkably clear descending parallel channel, particularly visible on the 4-hour timeframe. There's a fundamental principle governing such channels: the more distinctly they develop, the more traders spot and attempt to trade these patterns, ultimately accelerating the price's breakout beyond the channel boundaries. Currently, the gold price has rebounded from the upper channel boundary and is approaching the channel midline. Subsequently, one can likely expect a test of the lower channel boundary near the 3050 level. To confirm sustained downward momentum, watch for price consolidation below the channel midline at around 3180.

From a fundamental perspective, gold's weakening prices, reflecting a retreat from safe-haven assets, are being reinforced by the House of Representatives' passage of the tax reduction bill. This very legislation, particularly the earlier uncertainty about its approval in its original form, had triggered a wave of market anxiety and negative sentiment. Now that this hurdle has been cleared, fear is subsiding and gold is depreciating.

At the same time, it’s important to keep in mind that the market as a whole remains highly fragile, much of the accumulated negativity hasn’t gone anywhere. Risks like rising inflation, a budget crisis fueled by growing national debt, investors pulling out of US companies, and other factors continue to weigh heavily on the market. Any one of these issues could trigger a flare-up, sending safe-haven assets soaring once again.

From a technical standpoint, a breakout above the 3370 level would invalidate gold's descending channel scenario.

The overall recommendation is to sell gold. 

Profits should be taken at the level of 3050. A Stop loss could be set at the level of 3370. 

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.