Summary: Gold forms a head-and-shoulders top on H4 chart. Key support $2,320, resistance $2,380. Bearish bias with sell-on-rally strategy. Target $2,280.
Gold (XAUUSD) is showing a clear head-and-shoulders top pattern on the 4-hour chart, signaling potential downside pressure. As of June 6, 2026, spot gold trades near $2,345, down 0.3% from the Asian open. The left shoulder formed at $2,398, the head at $2,415, and the right shoulder is now developing near $2,382. A neckline connecting the lows at $2,328 and $2,331 sits around $2,330. A daily close below this level would activate the pattern, projecting a measured move toward $2,280. Immediate support is at $2,320 (former breakout zone from May 28). Below that, $2,300 psychological level and $2,280 (61.8% Fibonacci retracement of the April-May rally) come into play. On the upside, resistance stands at $2,358 (20-period EMA), then $2,380 (right shoulder peak), and $2,400 (key supply zone). The RSI on H4 has rolled over from 58 to 48, indicating fading bullish momentum. Stochastic oscillator shows a bearish crossover. For this week's strategy, consider selling on rallies to $2,365-$2,375, stop loss above $2,385, with first target $2,330 and second $2,280. Alternatively, a bearish break below $2,320 could be chased with a stop at $2,338, aiming for $2,300 and $2,280. A move above $2,400 would invalidate the pattern and turn bias bullish toward $2,430. Fundamental backdrop remains mixed: weaker US ADP data (152K vs 173K forecast) on June 5 supported gold, but hawkish comments from Fed's Bowman (no rate cuts in 2026) cap gains. Focus shifts to Friday's non-farm payrolls. Expect range-bound trading before the release, but technicals favor the downside. Risk management: keep position size 1-2% of account. Trade only confirmed setups.
Reference: TradingView daily technical snapshot (June 6, 2026); Reuters FX and commodities wrap-up (June 6, 2026); proprietary pivot calculations.