Gold Selloff Deepens, but Signs of Bearish Exhaustion Are Emerging

Gold has suffered one of its weakest Junes in decades, falling more than 10% so far this month and significantly underperforming its normal seasonal pattern. While June has historically been the weakest month for gold, this year's decline has been far steeper than average, raising the possibility that much of the bearish move may already be priced in.

At the same time, futures market positioning is showing early signs of improvement. Bearish bets have dropped sharply, and net-long positions are gradually increasing. This suggests traders are reducing risk rather than aggressively building new short positions.

From a technical perspective, price has already broken below 4100 key support. The 4,000 level remains the immediate support to watch. This area could encourage profit-taking from bears and attract fresh buying interest from longer-term investors. While the broader trend remains cautious, improving market positioning and oversold conditions increase the potential for a rebound if support continues to hold.

XAU/USD Daily Chart