Gold Retreats Below $4,000 as Traders Brace for Prolonged Consolidation
Gold's meteoric rally has hit a pause, with prices slipping below the $4,000 threshold after reaching record highs NEAR $4,400. Market technicians interpret this as a consolidation phase rather than a collapse, with indicators like the daily MACD flashing sell signals. Katie Stockton forecasts this sideways movement could extend into 2026 before the next decisive breakout.
The metal's breach of its psychological floor at $3,927/oz has traders eyeing the 50-day moving average near $3,766 as the next support level. Weekly stochastic charts suggest the downturn may persist for weeks or months, with $4,358 now marking the upper boundary of a new trading range.
Gold miners mirror this weakness. Newmont Corp. (NEM) closed below its 50-day moving average for the first time in nearly a year, with critical Fibonacci support looming at $75. A breakdown could see the stock test its 200-day average near $60.
