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Technical analysis: Spot gold breaks below key support and may retest the $3,959 low in the short term

Technical analysis: Spot gold breaks below key support and may retest the $3,959 low in the short term

智通财经智通财经2026/07/24 03:36
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  1. Spot gold has fallen below the critical support level of $4,038 per ounce and may retest the July 17 low of $3,959 in the short term. The loss of this support level signals that the upward trend starting from $3,943 is facing a severe test.
  2. Retracement analysis shows that $4,038 is an important point for observing whether the upward trend can continue—this is the 61.8% retracement level of the $3,959-$4,165 rally and also the support on the upward trend line for this leg. Since this level has been broken, the bullish momentum since $3,943 has been greatly diminished, and the market has returned to a bear-dominated structure.
  3. If the gold price manages to climb back above $4,038, bulls still have a chance to recover, possibly pushing prices for a further rebound into the $4,062–$4,087 range. However, before reclaiming this level, the short-term trend remains to the downside.
  4. From the daily chart perspective, gold prices have again stalled at the resistance level of $4,172, failing to achieve an effective breakthrough. The current consolidation above the key support at $3,965 displays technical characteristics more akin to a bearish platform consolidation pattern, rather than the previously anticipated double-bottom structure.
  5. If this platform consolidation pattern is confirmed, gold prices may see a deeper decline guided by a descending channel, with a medium-term target near $3,040.
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