Market Context

Gold prices continued to extend their decline during Thursday’s trading session, holding near the lowest level in more than seven months reached in the previous session.

The main pressure came from the strengthening U.S. dollar, as markets increasingly expect the U.S. Federal Reserve to maintain a tight monetary policy stance and potentially raise interest rates in the coming period.

As of 00:43 GMT, spot gold was down 0.4% at $3,985.89/oz, after touching its lowest level since November 2025 during Wednesday’s session.

Meanwhile, the U.S. Dollar Index (DXY) recorded its third consecutive session of gains, rising to 101.800, its highest level in 13 months. From a medium-term perspective, DXY has officially confirmed a bullish structure, as it continues to form higher highs and higher lows.

This is creating significant pressure on non-yielding assets such as gold, silver, and Bitcoin.

Technical Analysis: Downside Risk Still Dominates

This week, gold has continued to weaken and has officially returned to trading below the important psychological level of $4,000/oz.

This development further reinforces the bearish scenario that has been mentioned in previous analyses.

According to the current wave structure, gold is in a corrective move from the white B point at $4,889/oz toward the white C point. Bearish momentum remains strong, indicating that sellers are still fully in control.

In the short term, the key support zone to watch is around $3,890 - $3,930/oz. This area may produce a technical rebound if buying pressure appears.

However, if this support zone is broken, the downtrend is likely to extend further. In that case, the scenario of gold falling toward the $3,500/oz area can be considered in the medium term.

Conclusion

Gold’s loss of the $4,000/oz level is a clear signal that downward pressure remains dominant. The U.S. dollar maintaining its uptrend, along with expectations of prolonged high interest rates, continues to create unfavorable conditions for precious metals.

In the coming period, investors should closely monitor price reaction around the $3,890 - $3,930/oz support zone, as this area will play an important role in determining whether gold can stabilize or continue extending its decline toward lower price zones.

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