Gold is under downward pressure after falling to near a $4,376-per-ounce support level.

On May 27, BeInCrypto reported that gold has remained in a bearish trend after breaking below the lower boundary of a symmetrical triangle. Gold traded around $4,410, down 2 percent on the day.

Markets are first watching whether $4,376 holds. The area is a 0.618 Fibonacci retracement level on the daily chart and was presented as a turning point that could determine whether a short-term correction expands into a medium- to long-term decline. If the level breaks, the next downside target could open toward $4,044, the analysis said.

Short-term chart action has already tilted bearish. On the 4-hour chart, gold fell below the midline of a downward parallel channel and is now moving near the lower boundary of the channel. The zone also aligns with the $4,376 support level.

The relative strength index (RSI) fell to 27, entering oversold territory. But entering oversold levels is not immediately interpreted as a rebound signal. The Bollinger Band width percentile also rose into a high-volatility zone, signaling that the current decline is closer to a directional bearish move than a temporary correction.

A similar pattern was seen on the daily chart. The daily RSI is higher than the 4-hour reading at 36, but it can be interpreted as leaving room for further declines on higher time frames. The Bollinger Band width percentile has also begun to expand after a prolonged low-volatility period. Past analysis found that after such volatility expansions, trends often continued for a long time rather than reversing easily.

The current decline was assessed as a continuation of an existing bearish trend rather than the start of a new plunge. Gold has been making lower lows since breaking below the lower trendline of the earlier symmetrical triangle before May 15. As a result, the latest selling is interpreted not as a failure of a temporary rebound but as an extension of an already formed downward structure.

A rebound scenario remains. If buying holds $4,376, the first upside target was set at $4,609. That level corresponds to the midline of the declining channel. If the rebound strengthens further, gold could try to recover toward the long-term resistance area near $4,842. But $4,842 was cited as the zone that has blocked all rebounds since the peak that surpassed $5,600 in February.

Some in the market also raised the possibility of a larger decline. X (formerly Twitter) analyst Selal Kucuker (셀랄쿠추케르) presented a scenario in which gold could fall to around $3,500 by late 2026 after going through multiple rebounds and declines. A lower path from $4,234 to $3,475 was also mentioned on higher time-frame charts.

By contrast, it is far from the $20,000 outlook discussed by some in the derivatives market. The current chart structure is focused on whether support in the $4,300 range can absorb selling pressure. If $4,376 does not break, a short-term rebound remains possible, but if it fails to hold, downside pressure on gold could intensify further.