Gold (XAU/USD) recently took a sharp dive, trading at $2,711 after a 1% drop, driven by a strong bearish move that sliced through key levels.

Currently, immediate support is at $2,701, with the next support levels seen at $2,692 and $2,684 if the downward momentum persists. Immediate resistance now lies around $2,725, with further barriers at $2,743 and $2,752.

The 50-day EMA sits at $2,740, while the 200-day EMA at $2,742—both above the current price—reinforce the bearish sentiment.

The substantial sell-off, coupled with a bearish engulfing candle, signals potential for further declines. For now, as long as gold remains under $2,725, sellers appear in control, with limited signs of reversal.