Gold faces mass liquidation, $3,886‑$3,708 zone in focus
ITF Team1 min read
Spot gold slides for a second session, breaking key supports and putting the long‑term $3,886‑$3,708 retracement range on the radar.
Spot gold (XAU/USD) fell for a second straight session on Friday, breaking the $3,975.65 and $3,942.10 supports and edging toward the October 2025 low of $3,886.46. The sell‑off has wiped out almost all gains made since October 2025 as expectations of further Federal Reserve tightening keep pressure on the metal.
Technical outlook
- Current price: $3,914.77, down 2.33% on the day
- Key support: $3,985.94 (S1)
- Pivot: $4,027.41
- Resistance: $4,049.45
- If the weekly close stays below $3,995.81, the $3,707.82 level becomes a realistic target
Fundamental drivers
- Stronger‑than‑expected U.S. GDP and accelerating PCE inflation in September revived expectations of a 25‑bp Fed hike in December (74.1% probability)
- Higher crude prices (WTI and Brent up >2%) keep inflation concerns alive
- Geopolitical tension in the Middle East, especially the U.S.–Israel–Iran conflict, adds uncertainty but has not yet revived safe‑haven demand
What traders are watching
- A close below $3,995.81 could open the $3,708‑$3,707 range as the next downside test
- A bounce back above $4,027 could trigger a short‑term counter‑trend rally toward $4,050
- Upcoming data: December Fed meeting minutes and any shift in central‑bank rate‑pause signals
Related news
- Evening market overview, Oct 30, 2026
- BoJ holds rates steady as gold slips below $4,000
- Gold falls near $4,000 as US PCE data boosts December Fed hike odds
- Gold price forecast: bearish reversal threatens key support
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This article is compiled from international market news for information only. It is not investment advice.