Looking at the daily chart of gold, the price is down $73.15, or 1.75%, at $4,118.77. The low today reached $4,090.93, stalling just ahead of the 38.2% retracement of the rally from the September 2022 low, which comes in at $4,079.35.
Today’s decline also pushed the price back into an important swing area between $4,006.99 and $4,098.74. Earlier this month, buyers stepped in within that zone and sparked a rebound. As a result, this retest of support could once again attract dip buyers, with risk relatively well-defined against a move below the $4,000 level.
However, if the price breaks below $4,006.99 and then falls under $4,000, the technical picture would deteriorate significantly. In that scenario, buyers could quickly turn into sellers, opening the door for a deeper correction and increased downside momentum.
The market is once again at a critical battleground between buyers and sellers. Will buyers defend this support zone and drive prices higher as they did earlier this month? Or will sellers—who have already kept gold below its 200-day moving average for roughly 13 consecutive sessions—finally push through support on this second test and seize greater control of the trend?
