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Gold Price Has Limited Room for Further Decline, Rebound Expected
May 6, 2026, 10:49 AM
Yesterday, spot gold prices initially rose to $4,515 in early New York trading before sharply dropping to $4,457, then stabilizing. Although they later rebounded slightly, gains were halted at $4,485, followed by narrow sideways consolidation. However, today in early Asian trading, gold prices fell again, continuing to hit new intraday lows, with the current low at $4,442.67.
On the hourly chart, gold has formed a balanced descending channel. Yesterday's rebound reached near the top of the channel and clearly encountered resistance at around $4,509—the midpoint of the largest decline since May 29. This is why I often use the 50% retracement level as a key resistance or support point. If the current downward trend within the channel continues, gold will likely test the Gann 270-degree angle support at $4,410 again.
Nevertheless, I believe $4,410 remains a strong short-term support level unless gold prices drop sharply and break below $4,400. If the current downward trend continues, a rebound is expected once prices reach $4,410. Based on short-term cyclical patterns, the ongoing decline is likely to end by next Monday, meaning that further downside potential is limited and a reversal could occur at any time. Investors bearish on gold should consider $4,410 or $4,400 as their short-term ultimate targets. Meanwhile, $4,457 is expected to be the first major resistance for an intraday rebound; a breakout above this level would target $4,485, while $4,510 will be the key resistance determining whether the price can shift from a downtrend to an uptrend.
The above information is for reference only and does not constitute investment advice.
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