Gold Slides Lower as Bears Regain Control, Focus Shifts to Key $4,000 Support

Gold extended its decline to a two-week low on Thursday after repeatedly failing to hold above the key $4,100 support zone, while escalating tensions in the Middle East continued to drive oil prices higher and fuel broader inflation concerns.

Persistent signs of inflationary pressure have reinforced expectations that U.S. interest rates will remain elevated for longer. Recent U.S. data showed both consumer and producer prices continuing to trend higher, supporting the dollar and weighing on non-yielding assets such as gold.

Market focus now shifts to next week’s Federal Reserve policy meeting, where policymakers are widely expected to leave interest rates unchanged while maintaining a hawkish tone. Investors will also closely watch the release of the September PCE Price Index, the Fed’s preferred inflation measure, on October 29 for further clues on the future path of monetary policy.

The latest break below the $4,100 pivot level has further weakened the near-term technical outlook. A sustained daily close beneath this support would strengthen bearish momentum and increase the risk of a deeper decline toward the critical $4,000 support area, including the recent swing lows at $3,960 and $3,942.

From a technical perspective, the former $4,100 support has now turned into initial resistance. Additional barriers are seen at $4,120, followed by the falling 20-day moving average at $4,152, which has tracked the downtrend since early September and represents the first significant upside breakpoint.

Res: 4100; 4120; 4152; 4190
Sup: 4021; 4000; 3960; 3942