Gold hits new low; analyst warns further declines

Gold confirmed a fresh lower low on June 11, extending a downtrend that began at its January 29 record of $5,598. The metal traded near $4,324 as geopolitical tensions eased following a US-Iran peace agreement, and technical indicators moved further into bearish territory.

Market analyst Clem Chambers described the price action as a textbook parabolic unwind and warned additional declines could occur if key supports fail. He noted silver ran further and faster as retail traders chased the quicker rally and emphasized his concern applies to parabolic chart structures rather than gold’s long-term value.

On the daily chart, gold has produced lower highs and lower lows since the $5,598 peak. On June 11 the market set a new low and confirmed support near the 0.786 Fibonacci level, around $4,044, after dropping through the 0.618 Fibonacci level near $4,376. That broken 0.618 level now acts as resistance and sits along a descending trendline that has capped rallies since the all-time high. The Relative Strength Index was about 44, recovering from oversold readings. A sustained break below $4,044 would expose a projected extension toward roughly $3,621.

Shorter-term charts add to the bearish picture. The four-hour chart shows a breakdown from a descending parallel channel that pointed to a target just under $4,000, a level nearly reached by the June 11 low. A sharp recovery returned prices to the channel’s lower band, and the market is testing the channel midline, which overlaps the $4,376 0.618 resistance. The Moving Average Convergence Divergence indicator is close to a bearish cross.

Traders are watching whether the rebound stalls at the midline or breaks above it. A daily close back above $4,376 would reduce pressure on sellers; a clear breach of $4,044 would leave the $3,621 extension as the next technical target.

Chambers wrote, “I’m not bearish on gold long term; I’m bearish on parabolic charts.”