Gold After the 1400-Pip Drop: What Happens Next?GoldOANDA:XAUUSDMihai_IacobIn my yesterday’s analysis, I wrote that I was working with two bearish scenarios on Gold. The first one was a break below the 4370 support zone, followed by a continuation toward the second support around 4315. That is exactly what happened. Gold broke below 4370, continued lower, reached 4310 overnight, and my trade was closed at target. Now, after a roughly 1400-pip decline in just 24 hours, the rebound we are seeing should not be surprising. Markets rarely move in a straight line, especially after such an aggressive sell-off. A rebound does not automatically mean that the bearish scenario is done; in many cases, it is simply the market correcting part of the previous move before deciding what comes next. And this is where we are now: at a junction point. The 4310 low becomes important. If buyers manage to defend this area and push Gold back above 4370, the structure changes and we could see another leg higher. But if 4310 fails, there is very little reason to fight the bearish momentum, and continuation to the downside becomes the higher-probability scenario. This is also why I don't want to chase the market after a 1400-pip move. I would rather wait for the rebound, see what happens around the 4370 resistance zone, and let price show us whether buyers are actually regaining control or simply using the rebound to exit. For now, the pressure remains to the downside. So my strategy remains simple: sell the rallies, not the panic. The market will tell us when that view is no longer valid.