Usman Salis
Gold has been on a tear since late September, climbing to record levels near $4,381. Now it's taking a breather. This pullback looks like normal profit-taking rather than anything more serious, and the overall uptrend remains solid.
Current Market Position
Gold is holding steady above a critical support zone between $4,270 and $4,200. Market analyst Analyst Faruk points out that the daily chart shows prices still respecting the steep uptrend line that started back in September. The recent three-day dip is just a healthy pause after such a strong run-up.
As long as gold stays above $4,200, the bullish trend stays intact. If it breaks below that level, we could see a pullback toward $3,950–$3,850, though that would still be considered a normal correction within the bigger picture.
What's Driving Gold Higher
Several factors are keeping gold supported:
- Safe-haven demand from geopolitical tensions
- Lower bond yields making gold more attractive
- Central banks buying gold to diversify their reserves
- Growing industrial use in tech and green energy
If gold holds above $4,200, the next target is a retest of $4,381, with potential moves toward $4,450–$4,500. A close above that range could fuel another leg higher into year-end. On the flip side, a drop below $4,200 would likely trigger a deeper correction, giving long-term buyers another chance to get in before the next rally.
Usman Salis
