H1 Corrective Recovery Below Short-Term SupplyGoldOANDA:XAUUSDMason_Drake Gold is trading around 3,996 after extending its decline below the psychological 4,000 level and reaching a three-month low. Bullion is down roughly 4% for the week, its steepest weekly decline since June, as rising energy prices strengthen inflation concerns and reinforce expectations that U.S. monetary policy may remain restrictive. The Federal Reserve is still widely expected to hold rates at the October 27–28 meeting, but markets assign around a 78% probability of another hike in December. The latest selloff has also been amplified by broader risk reduction and forced selling as weakness in technology stocks triggered margin pressure across portfolios. Technical View The H1 structure remains clearly bearish. Gold has produced successive BMS and BOS signals, followed by strong bearish displacement through the previous 4,070–4,080 structure. Price continues to trade inside a descending channel, confirming that sellers remain in control of the broader short-term auction. Price is currently reacting around 3,990–4,008 Current Reaction Zone. After such an extended decline, a corrective recovery from this area would be technically normal. However, the chart does not yet support treating that recovery as a bullish reversal. The first meaningful supply above current price sits around 4,050–4,065. This is the key zone where the next seller response should be evaluated. Key Zones 4,177–4,188 — Major Supply Zone 4,128–4,142 — Intermediate Resistance 4,050–4,065 — Short-Term Supply Zone 3,990–4,008 — Current Reaction Zone 3,976.090 — Downside Target Trading Plan Sell Priority The main scenario is to allow Gold to produce a corrective recovery from the 3,990–4,008 Current Reaction Zone toward the 4,050–4,065 Short-Term Supply Zone. I do not want to chase the current bearish extension near 4,000. The preferred condition is a rebound into short-term supply followed by a clear H1 rejection or failure to establish acceptance above 4,065. If sellers regain control from this area, I will favor another bearish rotation through the current reaction zone and toward the 3,976.090 Downside Target. The projected sequence is: 3,990–4,008 reaction → recovery toward 4,050–4,065 → bearish rejection → renewed expansion toward 3,976.090. Invalidation The immediate bearish setup weakens if Gold establishes sustained H1 acceptance above 4,065. That would increase the probability of a deeper corrective recovery toward 4,128–4,142 Intermediate Resistance and require the short-term bearish thesis to be reassessed. Mason View The important point is that Gold is already heavily extended to the downside. Selling directly around 4,000 offers less structural advantage than waiting for price to retrace into supply. The H1 trend remains bearish, but 3,990–4,008 is a reaction zone, not an ideal location to chase weakness. The cleaner structure is a recovery toward 4,050–4,065, followed by renewed seller confirmation. For now, 4,050–4,065 is the key bearish POI, while 3,976.090 remains the primary downside objective.