Gold market analysis

Gold Market Analysis: Short-Term Buying on Dips Remains the Main Strategy  
October 26, 2026, 11:04 AM  

With the U.S. Federal Reserve's interest rate decision approaching, gold prices have continued to face pressure. Last Friday, gold closed below the $4,000 level, hitting a low of $3,975.64. This morning, it briefly dipped to $3,978.19 before recovering. On the hourly chart, investors may consider trading based on a potential small double-bottom rebound pattern—using $3,975 as support; if this level is breached, stop losses should be triggered. In the short term, resistance lies at $4,010, and if support holds, further upside could extend toward $4,055.45.

On the daily chart, gold has also formed a double-bottom pattern, which represents a higher-level technical formation. Therefore, if the support level at $3,944.13 breaks, the downside risk could be more significant. With the Fed’s meeting imminent, interest rate futures indicate a 90.6% probability that rates will remain unchanged. Thus, if the Fed maintains current policy as expected, gold prices are likely to rally sharply. However, if the central bank remains hawkish and the likelihood of a December rate hike remains high, the direction of gold will depend largely on market sentiment and unforeseen developments.

Nevertheless, given that both the hourly and daily charts show double-bottom patterns, the strategy should still focus on buying on dips. A break below the key Gann square 90-degree angle support at $4,010 would signal a shift in momentum and act as resistance for any short-term rebound. If gold consolidates below $4,010 ahead of the Fed announcement, a major breakout is expected afterward—particularly downward—which could signal the start of a new downtrend. Still, I anticipate gold will hold above the $4,000 level and potentially trade within a range between $4,000 and $4,200.

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