Gold market analysis

"Risk of Gold Price Falling Below $4,000 Rises" 18/11/2025 9:55 Completed 

Gold prices were weak yesterday. They fell below $4,060 in the midday Tokyo session and bottomed out at $4,049.81 before rebounding. They continued to rise above $4,060. It was thought that the $4,060 level could be held, but after the London close, they dropped to $4,052.56. They rebounded to near $4,081 but then weakened again and plunged sharply in the late New York session, even breaking through the $4,010 Gann 90-degree angle. Fortunately, gold prices found strong support at the $4,000 mark and have since held steady at that level and continued to rise. 

Sharp fluctuations are a precursor to a trending market. 

However, the spot gold price was extremely volatile in the Asian market this morning. After hitting a low of $4,027.54, it rebounded repeatedly but fluctuated rapidly within a range of $7 to $10, showing a strong possibility of a bullish-bearish double-sided attack before a trend emerges. From the 5-minute chart, the gold price consolidated above the 20SMA (4036.9) but then broke below it. Looking at the trend since the London close yesterday, it has formed a triangle pattern waiting to be broken. From the hourly chart, the gold price is still constrained by the 20SMA (4061), and a large bearish candle with a top at $4,065.1 has emerged. 

It may be difficult for the price to rise to $4,060 within the day. 

Overall, the fluctuation range of gold prices has shifted down to between $4,060 and $4,010. Unless it breaks above and closes above $4,065, $4,010 is likely to be tested again. If it falls below this level, it will become a strong resistance, and the gold price is likely to test $3,910. From the daily chart, the gold price has formed a lower high. Measured by the Fibonacci extension line, if the extent reaches 100%, the gold price will fall to $3,750.09, which is very close to the TD line's measured decline target of about $3,755. Therefore, it is judged that the short and medium-term trend of the gold price remains weak. The high of $4,055.46 made in the Asian market this morning is also close to the highs of $4,056.38 and $4,052.56 made in the early Tokyo afternoon and after the London close yesterday. It is questionable whether the gold price can rise to $4,060 today, while the risk of breaking below the $4,000 mark is gradually increasing! 

The above content is for reference only and does not constitute investment advice.