Gold’s decline was exacerbated by a break below $3,300, a level that had held since late May. Momentum selling intensified as the metal fell through its 50% Fibonacci retracement and ascending trend channel.
RSI and MACD signals turned bearish, with the next key technical support seen at $3,250, suggesting further downside if selling pressure persists.
However, a normal 50% correction of the $2956.56 to $3500.20 trading range puts the target at $3166.46.
Gold Prices Forecast: Cautiously Bearish Unless Geopolitical Risks Return
Gold’s steep weekly drop underscores how aggressively geopolitical risk premiums had lifted prices in early 2025, leaving them vulnerable once that risk dissipated. With the Fed holding a hawkish bias, inflation data reducing near-term cut expectations, and technical damage reinforcing bearish sentiment, gold remains under pressure in the near term.
