Gold continues to retreat under intense selling pressure, mirroring a broader wave of losses across commodities and financial markets. The precious metal recently fell below the critical $3,000 per ounce mark—a psychological threshold that has now turned into a resistance barrier.
As market anxiety grows, particularly over potential U.S. interest rate cuts and rising liquidation across asset classes, investors are asking: Is gold heading for a deeper correction toward $2,860?
Key Technical Analysis: Eyes on the $2,860 Support Zone
Currently, gold is trading within a crucial resistance zone between $3,000 and $3,020, a range it failed to break during previous bullish attempts. This reinforces the bearish outlook, especially as prices remain consistently below this area.
If gold remains under this resistance, sellers are likely to push the price toward key support levels at $2,956, with a potential move down to $2,860, a major technical target in the event of continued breakdown.
Bearish Scenario:
As long as gold fails to reclaim and hold above $3,020, any rebound is likely to be seen as a temporary correction within a dominant downtrend.
Fundamental Drivers: Why Is Gold Falling Despite Market Risk?
Surprisingly, the current gold selloff comes amid heightened global risks—normally a supportive environment for safe-haven assets like gold. However, this is not unusual during market stress, as investors often liquidate gold positions to cover losses in other markets (notably equities).
Data from the world's largest gold-backed ETF revealed outflows of 9.4 tonnes over the last two sessions, indicating significant institutional selling pressure.
The Fed Factor: Interest Rate Cuts Could Revive Bullish Momentum
Adding complexity to the outlook, the U.S. Federal Reserve is now expected to cut interest rates by 100 basis points before year-end. This could support gold in the medium term, though short-term buying appetite remains limited.
Even central bank demand seems to be slowing. The People’s Bank of China (PBoC) continued buying gold for the fifth straight month in March, but the volume of purchases has declined compared to previous months—indicating caution.
Conclusion: $2,860 Is Now in Focus as Gold Struggles Below Resistance
Gold prices remain under pressure, weighed down by institutional liquidations and technical resistance at the $3,000–$3,020 zone. Unless buyers step in with strong momentum, the bearish trajectory toward $2,860 remains in play.
For traders and investors, all eyes are on whether upcoming data or Fed signals can shift sentiment and revive the yellow metal’s appeal.
Key Support and Resistance Levels
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Resistance: $3,020 – $3,056 – $3,100
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Support: $2,956 – $2,910 – $2,860
