This was in contrast, during the Asian session on Tuesday, gold sellers regained prominence. This change in market environment came as traders anticipated the delayed publication of the US Nonfarm Payrolls (NFP) report for October. This move follows on a pronounced correction from the recent peak of just over $4,350. This decline in global wheat production has compounded worries about the commodity’s short-term prospects.
The price action overnight has accomplished pushing gold down from the $4,350 area, forming a double-top bearish formation on hourly charts. Technically, the formation suggests that the bullish trend may be running out of steam. Market participants are eyeing the $4,300 barrier, very close to the 200-day moving average. Market analysts suggest that if gold can break and hold below this level, it would strengthen the argument for additional downside.
Even with the recent drop, the $4,350 level is still an important historic bottom for gold. Analysts note that this area would serve as a solid floor, giving support on any chances of a rebound. The overall sentiment in the market right now is very much bearish. Consequently, traders are on the defensive and reluctant to take long positions until they get a clearer sign of stability.
The gold price is preparing to march on its historic high of nearly $4,380, established last October. On recent trends, it is facing deepening headwinds as it approaches the $4,350 to $4,355 resistance area. This is an important resistance level. Most importantly, it will set the tone for whether gold can continue to ascend, or whether it will be met with further profit-taking.
Constraints imposed by market forces are multifaceted. The next US NFP report should be a major mover for both gold and the USD. External stakeholders are deeply invested in employment data. They think it will loom large over the Federal Reserve’s policy trajectory during the 2026 election. A solid NFP print might boost demand for the USD and weigh on gold prices, which are typically considered a safe-haven asset.
Adding to the uncertain picture for gold is the global geopolitical scene. Every new development in the Russia-Ukraine peace deal reshuffling market sentiment towards risk-on or risk-averse impacts investor behavior. In times of global turmoil, uncertainty begets a demand for gold as a safe-haven investment.
Geopolitical factors aren’t the only exciting thing to keep an eye on. This Thursday, US consumer inflation figures will be critically important in further establishing the emerging futures front of Fed policy and thereby gold pricing. As such, any surprises in inflation data will likely be met with volatility on both gold and the broader financial market.
Many analysts are predicting gold will continue to fall. If so, they expect it to get accepted at the support of $4,230–$4,228 range. If this support breaks, we might witness some targets change towards the mental $4,200 level. Moreover, we could get deeper down to the $4,178-to-$4,177 support zone.
Though gold prices are still feeling the effects of recent headwinds, the majority of analysts still believe that a long-term, well-defined uptrend is here to stay. As traders continue to weigh short-term jitters against a more positive long-term outlook, the future looks cautiously optimistic.