Gold is consolidating following Friday’s 2% decline, with the bullish outlook expected to stay intact as long as the $4200 and $4162 support levels continue to hold.

Gold traded in a narrow consolidation range on Monday, following a nearly 2% retreat from Friday’s new record high at $4380, triggered by President Trump’s unexpected remarks suggesting that the latest tariffs on Chinese imports would not be sustainable.

The shift to a more reconciliatory tone after a week of strong rhetoric eased bullish momentum and prompted profit-taking, resulting in the largest single-day loss since November 25.

Despite the sharp decline, Friday’s close well above the key $4200 support (the first lower breakpoint) kept the broader bullish structure intact, suggesting that the drop may represent a pause and potential setup for a renewed advance.

Trump’s comments are likely an isolated case, as the notion of adding 100% to existing tariffs would also inflict significant harm on the U.S. economy. His remarks appeared more as a tactical threat aimed at China amid rising tensions over rare earth exports, rather than an immediate policy shift.

Underlying fundamentals for safe-haven demand remain strong, with ongoing protests in the U.S. adding to an already fragile political landscape and heightening global uncertainty.

Technically, the daily chart shows some weakening signals — stochastic indicators have exited overbought territory, the 14-day momentum has turned lower, and both Tenkan- and Kijun-sen lines have flattened — suggesting that a broader correction may still be unfolding, though the bias favors extended consolidation rather than deeper losses.

As long as gold holds above $4200, the near-term outlook stays constructive, with the next key support at $4162 (daily Tenkan-sen). A clear break below this level would signal that bulls are pausing and open room for a deeper correction.

Res: 4300; 4330; 4380; 4400
Sup: 4219; 4200; 4162; 4131