Alex Dudov
⬤Gold is finding its footing around the 4100 zone, where price is testing the 40-week moving average. The latest low formed precisely at this level, confirming its technical significance. The move came after a break below 4400, which opened the door to a potential decline toward the yearly pivot near 3829.
⬤Despite the recent pullback, the long-term uptrend remains intact. Gold had previously climbed toward the 5000 region before correcting. The current reaction echoes a historical pattern from the 2011 top, when gold also made its first multi-week low at the 40-week MA before staging a multi-week recovery. Gold holds $4,980 support as rebound toward $5,030 looms showed a similar dynamic, where defending support defined the recovery setup.
⬤The drop toward 4100 represents a test of dynamic support, not a confirmed breakdown. Buyers are actively responding at the moving average, consistent with corrective behavior seen in broader market conditions. Gold drops from $5,000 to $4,225, breaking key supports illustrated how momentum can shift sharply once structural levels give way.
⬤The current setup marks a clear inflection point. Holding above the 40-week MA could support a short-term bounce similar to historical patterns, while a breakdown puts the 3829 yearly pivot back in focus. As documented in Gold breaks structure, eyes 4290 after bearish shift, losing key support tends to reinforce downside continuation.
Alex Dudov
