Gold (XAU/USD) faced renewed selling pressure on Monday, trading around $4,501 as a prominent Hyperliquid derivatives trader closed their entire gold short position. According to reports from S.A.N.T.A., the trader executed hundreds of trades overnight and liquidated the short that was initiated on May 29, locking in profits from gold’s recent downturn. Notably, the same trader maintained a large long position on Hyperliquid's native token HYPE, which remains open with over $1.07 million in unrealized gains.
The closed gold short suggests a tactical exit from a bearish trade after gold slipped to a lower range, but it does not automatically indicate a reversal. The trader kept the HYPE long — entered on May 18 at approximately $45.95 — signaling a longer-term conviction on the token despite the gold volatility.
Technical analysis from JMH House of Analysis highlighted a 15-minute corrective structure after gold's peak at $4,595 (the 1.618 Fibonacci level). Wave A appears to be targeting the $4,490–$4,510 support zone. A bounce from this area could drive a wave B correction to $4,546, while a breakdown would extend the decline toward $4,456. On the daily chart, momentum indicators remain weak: the MACD line stands at -50.249 (below the signal line at -47.628) and the Chaikin Money Flow is flat near zero, underscoring a lack of buying advantage and a bearish tilt.
Gold ended the session down $39.10, with sellers pressing from the $4,546 high. The market now watches whether buyers can defend the $4,490–$4,510 floor, which will determine the next directional move in XAU/USD.
