XAUUSD — Bearish MSS, Sell the RetracementGold / U.S. DollarFOREXCOM:XAUUSDGold_Prime_SmcGold is trading around $4,027 after a sharp rejection from the $4,160 area. The macro environment currently supports downside pressure as oil above $100 has revived inflation concerns, lifted Treasury yields and strengthened the US dollar, reinforcing expectations that Federal Reserve policy may remain tighter for longer. The upcoming Fed decision and the July 30 US GDP and PCE releases could keep volatility elevated. On the H2 chart, price has reversed from the recent high and confirmed a bearish MSS near $4,105. The subsequent displacement broke below the marked FVG, showing that sellers have regained short-term control. SMC View The bearish MSS indicates that the previous bullish sequence has weakened. Price then moved aggressively through the $4,036–$4,047 FVG, which may now act as resistance rather than support. Gold is already approaching lower support, so selling at the current price would mean chasing an extended move. The preferred decision zone is the $4,064–$4,078 supply area, where a retracement could rebalance the bearish displacement before continuation lower. Main Trading Scenario Condition: Gold retraces into the $4,064–$4,078 supply zone and forms a clear bearish rejection. A lower-timeframe bearish MSS or CHOCH is required before entry. Entry: $4,064–$4,078 after bearish confirmation SL: Above $4,078 and the rejection high TP1: $4,036–$4,047 TP2: $3,982–$3,991 TP3: $3,943–$3,953 Key Zones to Watch Current price: $4,027 Main sell zone: $4,064–$4,078 Higher supply: $4,100–$4,112 Broken FVG: $4,036–$4,047 OB target: $3,982–$3,991 Main target: $3,943–$3,953 Invalidation: Acceptance above $4,078 Confirmation: Bearish rejection with MSS or CHOCH Prime Gold View The sell bias remains valid while Gold stays below the $4,064–$4,078 supply zone and maintains the bearish MSS. The preferred plan is to wait for a confirmed retracement rather than chase price near support. If sellers defend the zone, price could rotate toward the OB at $3,982–$3,991 and potentially the deeper demand near $3,943–$3,953. Acceptance above $4,078 would invalidate the main setup. No confirmation, no trade.