Market Context

Gold prices continued to face strong selling pressure at the start of the week and extended their decline into Tuesday. The main driver came from escalating tensions between the United States and Iran, which pushed oil prices sharply higher, raising inflation concerns and reinforcing expectations that central banks may keep interest rates elevated for a longer period.

As of 4:30 GMT+3, spot gold fell to $3,978 per ounce, after briefly touching $3,942 per ounce during the session, its lowest level in eight months. With the current price action, the precious metal is on track for one of its steepest monthly declines in years, with losses exceeding 10%.

Technical Analysis: The Downtrend Remains Strong

After breaking below the psychological level of $4,000 per ounce, which corresponds to the 200% Fibonacci Extension level (FE200), gold moved closer to the key support zone of $3,885 - $3,930 per ounce.

According to the current wave structure, gold remains in a corrective move from point B at $4,889 per ounce toward the white point C. Bearish momentum continues to remain elevated, reflecting that selling pressure is still dominant and that no clear reversal signal has appeared yet.

The price has now started to approach the key support zone of $3,885 - $3,930 per ounce. This is an important area to monitor closely in order to assess the market’s reaction. If selling pressure continues to dominate and price breaks below this support zone, the next potential target would likely be around the 261.8% Fibonacci Extension level (FE261.8), corresponding to approximately $3,755 per ounce.

Conclusion

Gold’s short-term trend remains tilted to the downside as macroeconomic factors continue to weigh on the precious metal, while the technical structure has yet to show signs of a bottom formation.

The $3,885 - $3,930 per ounce area will serve as an important short-term support zone. If this level is broken, the probability of gold extending its decline toward the $3,755 per ounce area would increase.

Conversely, a technical rebound would only be more clearly confirmed if price shows signs of holding above support, accompanied by an improvement in buying momentum.

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