Today’s Gold Analysis Overview:
- The overall of Gold Trend: Remains Bullish.
- Today's Gold Support Points: $$4090 – $4020 – $3945 per ounce.
- Today's Gold Resistance Points: $4170 – $4240 – $4350 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $4220, with a target of $4070 and a stop loss of $4280.
- Buy gold from the support level of $4040, with a target of $4300 and a stop loss of $4000.
Technical Analysis of Gold Price (XAU/USD) Today
Despite the bullish technical outlook for gold, there have been numerous warnings about the consequences of aggressive profit-taking, given the record-breaking upward trajectory. Gold futures fell across gold trading platforms, recording their largest single-day loss in five years. The gold index had seen a sharp rise this month, rising 9%, consolidating its outstanding performance in 2025. However, investors may have already booked short-term profits.
Gold prices plunged by 6 percent in yesterday's session alone, hitting their lowest level in a week at $4,082 per ounce from the resistance level of $4,375 per ounce in the same trading session, marking the largest daily loss since August 2020. In afternoon trading, gold prices continued their losses, falling by about 0.5% to settle below $4,100 per ounce. Today, Wednesday, gold prices briefly fell to the support level of $4,005 before quickly rebounding upwards, stabilizing around the resistance level of $4,140 per ounce at the time of writing this analysis.
Across trusted trading platforms, gold prices remain up 55% to date
In similar performance, the sister commodity to gold, silver prices, fell by about 8% to settle below $48 per ounce. The white metal gained 0.5% in after-hours trading, attempting to reclaim $48. Overall, silver prices remain up by 63% this year.
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Why did gold prices decline today?
According to gold analysts' forecasts, the gold sell-off was widely anticipated, given that the metal market had been in the overbought zone for weeks. It remains to be seen whether investors will buy the dip. Experts believe that buying gold on price declines has been taking place until yesterday, but the sharp surge in volatility at its highest levels over the past week suggests caution and may encourage profit-taking, at least in the short term.
For weeks, the gold trading market has experienced a sharp rise due to increasing economic and geopolitical uncertainty, falling interest rates, and a weak US Dollar. A weak Dollar is beneficial for dollar-denominated commodities, as it makes them more expensive for foreign investors to purchase. Furthermore, lower interest rates reduce the opportunity cost of holding non-yielding bullion.
However, it is unclear whether the sharp losses will continue, especially with so many factors intertwined. However, the next major catalyst could be the US Consumer Price Index report for September, which is due on Friday, despite the three-week-long US government shutdown. The market consensus is that the annual US inflation rate will rise to 3% for the first time since January.
Trading Tips:
We still recommend following a strategy of buying gold on every strong price decline, but without undue risk. Also, avoid trading only gold and diversify your investment portfolio with many trading products to avoid any strong and sudden change.
The Gold Market Remains Bullish
Despite the recent technical sell-off, it is a very healthy and natural correction after the record consecutive gains in gold prices. Gold's stronger trajectory remains bullish, and stabilization around and above the historic psychological resistance of $4,000 per ounce stimulates the bulls' control and leads to the expectation of prices rebounding upwards again. The gold market is still supported by increasing global trade and geopolitical tensions, the shift by global central banks toward monetary policy easing led by the US, in addition to record purchases of gold bullion by central banks for hedging purposes. Ultimately, Gold has become the number one safe haven in the world.
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