Daily Gold Analysis | Jan 7, 2026 (Wednesday)
Well, what a great market we have; a market that teaches you exactly and beautifully the difference between being an analyst and being a trader. The difference is that you do the analysis, but you must trade differently from your analysis depending on the market movements and the right timing for entry. You need to completely separate your trading from your analysis.
What happened? If you watched my video from two days ago, I pointed out the zone between $4,470 and $4,450. I highlighted this area (Zone 4460) as a place where the market could reverse. In yesterday’s video, after seeing this candle, I took a sell position and my stop was set behind this trade.
What happened was the market hit my stop. Imagine if I hadn’t set a stop; what a disaster it could have been for my account. Without a stop, the market would have reached $4,500 while I hoped for a reversal, potentially losing 10% of my assets and seeking revenge on the market. I could have lost everything by the time it reached $4,500.
But the stop was hit, and I waited for the market to reach $4,500. I didn’t take a sell order there because it was the middle of the night and I was asleep, and secondly, I had no confirmation. I only had the $4,500 level. However, if we look at the daily timeframe (not on your broker’s chart, as MetaTrader differs from TradingView), you will see something else.
If you use MetaTrader, these daily candles are exactly aligned. This shows that on the daily timeframe, we reached a trading node and this Breaker Block (Zone $4,468 – $4,473), and that is exactly where the drop started.
When I woke up today, I didn’t trade immediately because of yesterday’s small loss. At 9:30 a.m. Dubai time, I checked the market, as reversals often happen around that time. Based on the $4,500 confirmation and the daily candle closing on the Breaker Block, I decided to open the trade.
The trade was executed exactly at 9:30 a.m. If you look at my executions, you can see I sold right here (Zone 4468). I had some scalping trades for small profits, but the main trade was opened there.
The market started to drop, and after seeing a second confirmation, I added more volume. Now, I expect the market to give me lower prices. I will keep one position for the short term and the other for the long term, setting the TP for one at the 50% Fibonacci level.
Since we are at a very high price, once the market reverses on the daily chart, it is unlikely to hit a new high soon. I expect a significant drop. Some might not like it, but gold looks bearish to me, and we could even see targets like $3,750 or $3,500 because nothing is standing in the way anymore.
This is my analysis, but I don’t trade solely based on it; I consider my risk tolerance and move with the market trend. Wish you success.
