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Gold prices fell to $4,090.93 on the daily chart, nearing the 38.2% Fibonacci retracement level at $4,079.35 and re-entering a key support zone between $4,006.99 and $4,098.74. This area previously triggered a rebound earlier this month, suggesting potential for dip buyers if the price holds above $4,000. However, a breakdown below $4,006.99 could signal a deeper correction, intensifying downward momentum.
The critical support/resistance battle at these levels impacts commodity traders, particularly those using technical analysis. A sustained move below $4,000 would shift the technical outlook bearish, while a rebound could attract buyers seeking entry points. The 200-day moving average, which gold has been below for 13 sessions, adds context to the trend's strength.
For Gulf investors, the outcome of this price action will influence gold's role as a safe-haven asset amid global uncertainties. Traders should monitor the $4,000 psychological level and volume patterns to assess conviction behind any directional move. Central bank policies and geopolitical risks may also play a role in shaping near-term price dynamics.
