GOLD Pressures Key $4,000 Level Once Again

Gold traded below the key $4,000 threshold on Friday, extending losses after Thursday’s decisive break and close beneath this pivotal support level—the first daily close clearly below the mark since November 6, 2025. The move comes after nearly a month of consolidation around the $4,000 zone, during which repeated downside attempts failed to secure a sustained bearish breakout.

The latest breach of this major support may mark the end of the prolonged sideways phase and signal a resumption of the broader downtrend from the record high, provided that the break is confirmed and maintained.

Fresh selling pressure has been driven by renewed escalation in the Middle East, which has revived inflation concerns and helped underpin the U.S. dollar, partially offsetting optimism generated by softer-than-expected U.S. inflation data for June.

A sustained move below the broader $4,000 support area, including the recent spike low at $3,942, would strengthen the bearish outlook and expose the next downside targets at $3,886, followed by $3,666, where the weekly Ichimoku cloud base is located, and then $3,606, representing the 50% retracement of the long-term rally from $1,613 to $5,598.

Gold is currently on course for a second consecutive weekly decline, with bearish daily technical indicators continuing to reinforce the negative near-term picture.

On the other hand, failure to sustain losses below $4,000 would weaken the emerging bearish signal and suggest that the metal remains trapped within its recent trading range. Even in that scenario, the broader bias would remain tilted to the downside while resistance at $4,203, the top of the recent range, continues to cap recovery attempts.

Res: 4067; 4134; 4162; 4203
Sup: 3970; 3942; 3886; 3717