Technical Analysis – Gold plunges over 8% to 4‑month lows; eyes 4,000
Gold is sliding over 8% on Monday, breaching a four‑month low at 4,150, as escalating Middle East tensions fuel inflation concerns and expectations of higher global interest rates.
The precious metal has broken below its medium‑term ascending trendline and extended losses into a ninth consecutive session, slipping under its year‑to‑date low of 4,400 from January 2 and marking its weakest level since November 11, 2025. Last week alone, gold shed more than 10.5%.
The momentum indicators confirm the entrenched bearish tone. The stochastics and RSI are flatlining and firmly in oversold territory, reflecting persistent downside pressure, while the MACD continues to deepen in negative territory, underscoring the force of the selloff.
The 200‑day simple moving average (SMA) near 4,090 is now the key support to watch. A decisive break would reinforce the bearish bias and expose the psychological 4,000 level. Below that, the October and September lows near 3,880, 3,720 and 3,620 become the next downside targets.
On the upside, initial resistance sits in the 4,300-4,400 band, followed by a potential recovery attempt toward the previously supportive uptrend line near 4,650.
Summing up, gold’s downtrend remains firmly in place, with monthly losses now exceeding 21.5% and wiping out year‑to‑date gains. As long as price stays below the broken uptrend line, and especially if it falls through the 200‑day SMA, any rallies are likely to remain shallow and vulnerable to renewed selling for now.
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