XAUUSD - Can 3,989 Trigger Another Gold Selloff? GoldOANDA:XAUUSDFelix_MacroTrade Gold is trading around 3,987 after a sharp decline from the 4,075 region. The breakdown below the ascending channel has shifted market control toward sellers, while the latest rebound from 3,970 is approaching an important resistance zone. For me, the key question is whether this recovery can develop into a bullish reversal or simply create another opportunity for sellers. Market Structure Gold has confirmed a bearish CHoCH followed by a BOS, signalling a clear shift in short-term market structure. The breakdown below 4,020 and the rising channel support has reinforced selling pressure. Price recently reacted from the 3,970 to 3,975 demand zone, but the recovery remains vulnerable while gold trades below 3,989. The Fibonacci retracement also highlights potential resistance between 4,000 and 4,020, where sellers could return if the recovery extends. Trading Scenario My preferred scenario remains bearish while gold fails to reclaim stronger resistance. If price rejects the 3,983 to 3,989 zone, another decline toward 3,970 and the major downside liquidity at 3,965 becomes possible. A confirmed breakdown below 3,965 could extend the decline toward the deeper demand zone around 3,940 to 3,946. However, if buyers reclaim 3,989 and establish a bullish structural shift, a corrective recovery toward 4,012 could develop. A sustained breakout above 4,012 would weaken the immediate bearish outlook. Key Price Zones to Watch Current price: 3,987 Immediate sell reaction zone: 3,983 to 3,989 Recovery resistance: 4,012 Near-term demand: 3,970 to 3,975 Major downside liquidity: 3,965 Extended demand target: 3,940 to 3,946 Main View Gold has lost its bullish channel, and sellers continue to control the short-term structure. I am watching the reaction around 3,989 rather than chasing the decline after such a strong bearish move. A rejection could bring another test of 3,965, while a confirmed recovery above 4,012 would suggest buyers are beginning to rebuild their structure. My focus is simple. Below 3,989, sellers retain the advantage. Losing 3,965 would strengthen the case for another decline toward 3,940. Will gold reject 3,989 and continue lower, or can buyers reclaim 4,012?