Gold Trade Setup – 22nd Jan

Gold has shifted from “buy-the-dip” to “sell-the-rally” conditions after a sharp pullback from record territory. The move appears driven by a cooling in safe-haven demand and a modest re-pricing in rates expectations, with markets leaning risk-on and the USD holding firm. In this environment, rallies are more likely to be sold until price reclaims key prior support and momentum stabilizes. Our focus today is a high-conviction, rules-based short setup designed to capture continuation lower while keeping risk tightly defined. We will prioritize clean execution around obvious liquidity zones and only engage if price action confirms the rejection / breakdown levels outlined below. Gold Trade Setup: Pair / Asset Bias & Entries Stop / Invalidation Targets Why A+ (Fundamentals, Technicals, Sentiment) Near-term catalysts (UK time) GOLD SHORT – Sell rallies (safe-haven premium unwind) Short between 4,845 – 4,865 (retest) OR sell break < 4,815. 4,895 (back above breakdown zone; avoids whipsaw) T1: 4,760 T2: 4,705 Fundamentals: gold slid as geopolitical/tariff tensions eased; risk-on & firmer USD reduces haven bid. (Reuters) Technicals: sharp reversal from record highs (risk of deeper mean reversion after vertical run). (Reuters) Sentiment: likely profit-taking/crowded long after record print; momentum now pointing lower. Thursday 22nd Jan:  13:30: US Jobless Claims  15:00: US PCE (key for yields/real rates). (FRED) Next week: Fed meeting Jan 28 (hold expected, but guidance matters).  Chart by TradingView – Gold Trade Setup – 22nd Jan Execution & Risk Plan: This is an A+ setup because the macro backdrop (reduced haven bid), the technical structure (post-impulse reversal / mean reversion risk), and the current sentiment (profit-taking after an extended run) are aligned in the same direction. The plan is straightforward: fade rallies into resistance or trade a confirmed breakdown, and allow targets to be reached in stages while actively managing risk. As always, the trade is invalidated if price reclaims the defined resistance zone and holds—at that point, the bearish thesis is wrong and we step aside. Manage position size around today’s US catalysts, expect volatility around the release windows, and avoid widening stops to “make it work.” If the trigger does not present cleanly, no trade is the correct decision. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar Gold Trade Setups please visit our Commodities Trade Ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and TerraBullMarkets.com are not registered investment advisors and nothing in this article is intended to be investment advice. TerraBullMarkets...