H1 Major Supply Rejection SetupGoldOANDA:XAUUSDMason_Drake Gold is trading around 4,194, extending its recovery after rebounding from the recent two-month low. The move has been supported by a softer U.S. dollar and some easing in Treasury yields, allowing buyers to rebuild short-term momentum. Reuters However, the macro backdrop is not fully supportive. The U.S. 10-year Treasury yield remains near 5.29% after recently reaching multi-decade highs, while Federal Reserve officials continue to indicate that additional tightening may still be required, even if the timing remains flexible. U.S. consumer sentiment also weakened to 46.3, while one-year inflation expectations increased to 4.7%, keeping inflation risk in focus ahead of the next CPI release. Reuters Technical View On the H1 chart, Gold has produced a clear bullish BOS above the previous 4,145 structure and accelerated toward the 4,200 region. That bullish leg is now reaching an important technical confluence. Price is testing the 4,200–4,210 Major Supply zone, while the descending resistance trendline from the previous highs is crossing almost exactly through the same area. This creates a strong decision point where the current bullish recovery could begin losing momentum. The key detail is that price has not yet established clean H1 acceptance above 4,200. If supply continues to hold and buyers fail to break the descending trendline, the current rally can be treated as a retracement into resistance rather than a confirmed larger bullish reversal. The first downside reaction zone sits around 4,152–4,168. This area previously supported the breakout and remains the nearest H1 demand/support block. Key Zones 4,200–4,210 — Major Supply + Downtrend Resistance 4,229 — Major H1 resistance / bearish invalidation area 4,152–4,168 — Main Support Zone 4,121–4,132 — Bearish Target Zone 4,064–4,078 — Major Demand Trading Plan The main scenario remains a bearish reaction from the 4,200–4,210 supply zone. I want to see price fail to establish H1 acceptance above this area and show clear rejection below the descending resistance. The first move would be toward 4,152–4,168. A temporary reaction from this support is possible, but if the recovery fails to reclaim the upper structure and sellers regain control, a clean break below 4,152 would expose the 4,121–4,132 bearish target. If bearish displacement continues through that zone, the broader downside extension on the chart remains the 4,064–4,078 Major Demand. Buy/Sell View The sell-side view remains preferred while Gold stays below 4,200–4,210 and the H1 downtrend resistance remains intact. There is no reason to chase the move before rejection is confirmed. A sustained H1 breakout and acceptance above the supply zone would weaken this bearish thesis, with 4,229 becoming the next major structural level to watch. Final View Gold has recovered strongly, but the rally is now entering one of the most important H1 resistance areas on the chart. The combination of Major Supply, descending trendline resistance and the psychological 4,200 level makes this a critical decision zone. For now, the chart favors waiting for confirmation of rejection rather than assuming that the bullish breakout can continue immediately. Below 4,200–4,210, the bearish path toward 4,152–4,168 and potentially 4,121–4,132 remains technically valid.