By Ahmad Assiri, Research Strategist at Pepperstone
Gold is undergoing a healthy period of consolidation following the recent pullback that pushed prices below $4,100 per ounce. Yet, it continues to hold the $4,000 level as a solid line of defense. Price action over the past two sessions suggests the presence of committed buyers in this zone, with demand volumes rising whenever prices approach it, signaling a conviction that this area represents a technical and psychological floor for the market.
From a technical standpoint, a break below $4,000 could open the door for a retest of the moving averages that have been lagging the broader uptrend. However, that scenario appears less likely for now, given the still well supportive macro backdrop. The big picture continues to underpin gold’s appeal as and the chosen diversifier for multiasset managers.
In short, the market appears to be in a consolidation pause rather than the start of a broader downtrend. The firm defense of the $4,000 threshold indicates that weakness is likely to be viewed as an opportunity to accumulate positions. This pattern of resilient dip-buying reinforces the prospect of gradually rebuilding toward the $4,200 and $4,400 levels tactically.