Gold prices yesterday saw a drop to the lowest level in more than a week at $3,997/ounce.
The reason for this decline is believed to be the decreasing expectations of a Fed rate cut, following hawkish remarks from Fed officials after the U.S. government reopened.
However, investors still expect several rate cuts to take place in the upcoming quarter in 2026, and gold prices remain supported for a long-term uptrend.
Additionally, the cooling U.S. economy and the initial jobless claims report released last night—showing higher numbers compared to the previous period—have further strengthened safe-haven demand.
Therefore, in the near future, gold is expected to continue receiving upward support through 2026, as long as it maintains trading above the $4,000/ounce level.
Technical analysis:
In the short term, gold prices may consolidate within the 4,000 – 4,080$/ounce range while awaiting the Non-farm Payrolls report to be released tomorrow.
However, sudden market volatility caused by a shift in capital flow cannot be ruled out. If this range is broken, gold will likely move to the next two zones: 391x to the downside and 414x to the upside.
Trí Hùng
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