Gold Price Dangerous Trap: Top Analyst Warns 90% of Traders Could Get Wiped Out Today

Gold price volatility returned early Tuesday after buyers suddenly lost control of the market following Monday’s strong opening. The sharp reversal left many bullish positions under pressure, and fresh selling pressure quickly entered after gold failed to continue higher above the $4500 zone.

That sudden weakness has created a divided market. Some traders now expect another deep correction in gold price, yet others believe the current decline may only be a temporary trap before another upside move begins. The next few sessions could decide whether gold breaks higher again or slips into a larger breakdown below key support zones.

Gold analyst Itsadiee_Fx now believes the current setup may become dangerous for traders entering positions too early. His latest analysis focused heavily on market psychology and the growing imbalance between frustrated buyers and aggressive short sellers.

Gold Price Drop Has Pushed Many Buyers Out of the Market

Itsadiee_Fx explained that many gold buyers entered positions after an inverse head and shoulders pattern started forming last week. Monday’s gap up opening increased bullish confidence because gold managed to hold near higher levels instead of collapsing immediately.

Tuesday’s session changed the situation quickly. Gold price started moving lower shortly after the market opened. That decline placed pressure on traders who bought during Monday’s rally or held long positions after Friday’s close above $4500.

The analyst described the move as a stop-loss hunt designed to force weak buyers out of the market. He explained that trailing stop losses and aggressive long entries were likely removed during the decline. Fresh sellers also entered after noticing similarities between this week’s setup and last Tuesday’s bearish price action.

Itsadiee_Fx warned that following the crowd during this kind of setup could become risky because many sellers may now be entering too late after gold already dropped heavily from recent highs.

XAUUSD .

THIS GOLD MOVE WILL WIPE OUT 90% TRADERS TODAY ARE YOU READY OR EXITING TOO EARLY?

So guys, today feels very interesting to me in gold because of the way market psychology is currently formed. I believe there is a strong opportunity to make big money in gold in the… https://t.co/QShFgXdWG4pic.twitter.com/TYNHKpTaeK

— Itsadiee_Fx (@Itsadiee1) May 26, 2026

Gold Price Support Zones May Decide Whether Bulls Recover Control

The analyst identified $4504 to $4513 as a critical support zone for gold price. Another support area between $4496 and $4484 also remains important if the market falls further during the session.

His strategy remains cautious despite maintaining a bullish outlook. Itsadiee_Fx explained that buying immediately still carries risk because short-term price action remains weak. Selling aggressively near lower levels also appears dangerous because gold has already declined sharply from the top.

That concern forms the center of his market thesis. He believes many traders are now positioned for further downside because they expect another bearish Tuesday similar to last week. Gold market makers could take advantage of that imbalance if price suddenly reverses higher later in the day.

The analyst now expects gold price to recover strongly if support zones continue holding. He even projected a possible breakout above $4572 before Wednesday if bullish momentum returns during off timing market sessions.

Related Article: Robert Kiyosaki Makes Shocking Silver and Gold Price Predictions for 2026

Ascending Trendline Structure Continues Supporting Gold Price Outlook

The broader gold price structure still leans bullish despite recent weakness on lower timeframes.

A look at the gold chart shows price continuing to bounce from an ascending trendline that has remained active since mid May. Recent bearish candles on the 4 hour timeframe placed temporary pressure on the setup, yet gold eventually reacted positively from the trendline once again.

That repeated reaction keeps the bullish structure alive for now. If the pattern continues holding, gold price could climb from the current zone near $4528 toward levels above $4575 during the next few sessions. Historical price behavior near ascending support also keeps this setup technically important.

A decisive breakdown below the ascending trendline would weaken the bullish structure considerably. Further weakness below the $4490 level could invalidate the setup completely and increase the probability of deeper downside pressure.

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