The Core Suppression Logic for Short SellersGold vs US DollarPEPPERSTONE:XAUUSDAvaTaylor🚫 **The Core Suppression Logic for Short Sellers** 💵 **The Fed's hawkish stance remains unchanged, with clear medium- to long-term suppression** The Fed maintains its hawkish stance of "high interest rates for longer," clearly stating that it will only cut rates once throughout 2026, and the window for rate cuts has been postponed to September–November. There has been no easing of core policies. In a high-interest-rate environment, the long-term investment value of gold is suppressed because gold is a non-interest-bearing asset. The opportunity cost of holding gold rises, pushing capital toward interest-bearing assets like the U.S. dollar and Treasury bonds, weighing on medium-to-long-term gold demand. This fundamental logic means the current rebound is only a technical correction after a sharp drop, not a new unilateral bull market. Upside potential is strictly limited: breaking previous all-time highs will be extremely difficult, and even holding above **$4,600** will be a challenge. Moreover, if Fed officials issue fresh hawkish remarks next week or the core PCE price index comes in hotter than expected, it will reinforce the high-rate policy stance, putting persistent downward pressure on gold and potentially triggering a deeper pullback. 📉 **Strong resistance in the 4550–4600 range restricts the rebound** The **4550–4600** zone was a heavy trading area during the previous decline, holding massive trapped long positions and profit-taking orders. These funds are likely to liquidate as prices rebound, creating concentrated selling pressure and pulling gold lower. Recent price action already shows a mild pullback after hitting **$4551.55**, confirming strong resistance in this zone. If volume does not expand significantly when prices test this range next week, a breakout will be unlikely, and a “rise then fall” pattern is highly probable, capping the short-term rebound. In addition, **$4600** is near prior highs and a key psychological resistance level. Failure to break above it will make a sustained rebound unsustainable, and prices may return to range-bound consolidation.