Gold remains under pressure as the strength of the US dollar and hawkish expectations from the Fed weigh on prices. Central bank speeches and US jobs data could determine gold’s near-term direction. The technical outlook remains bearish unless prices find key resistance above $4,100.
fell back below the symbolic level of $4,000 per ounce this week, touching around $3,960 on Tuesday morning, its lowest level in eight months.
This decline is largely explained by expectations that U.S. monetary policy could remain tighter for longer. Federal Reserve Chairman Kevin Warsh’s hawkish tone has reinforced expectations of a rate hike before the end of the year, supporting the U.S. dollar while reducing the appeal of non-yielding assets such as gold.
Investors are also focusing on Thursday’s U.S. nonfarm payrolls report, which could reshape expectations for the Fed’s policy direction based on the strength of the labor market.
Despite persistent geopolitical tensions between Washington and Tehran, the demand for safe haven assets has taken a back seat. For now, interest rate expectations remain the dominant force determining gold prices.
Will a test of the $4,000 level attract buyers?
From a technical perspective, the move below $4,000 is an important bearish signal, especially after several consecutive weeks of weakness. However, the outage has not yet been confirmed. The next major support area lies between $3,885 and $3,900, an area that served as a bottom in late October 2025 and has yet to be revisited during the current correction.
The technical picture also suggests that selling pressure may be easing. The RSI is approaching oversold territory, a sign that the recent downtrend may be losing momentum.
Fundamentals also continue to provide support. Central bank demand remains strong, with World Gold Council surveys showing many monetary authorities still plan to increase their gold reserves in the coming year. At the same time, despite lowering some of their price targets, major investment banks such as Goldman Sachs, ING and Deutsche Bank continue to forecast gold prices above…
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