Gold Extends 26% Correction Amid Dollar Strength and ETF Outflows

Gold prices continue their downward trajectory, now in a 26% correction phase as dollar strength and persistent ETF outflows weigh on the market. Technical charts reveal weakening momentum, with prices breaching key support levels and failed rebound attempts.

Analysts Ian Cooper and Ole Hansen note sustained selling pressure, though their rationale diverges. Cooper highlights gold's breakdown below a critical horizontal support zone that previously held firm, with no strong reversal signals emerging from buyers. The daily chart remains bearish, with resistance forming around the descending trendline that has capped rallies since the previous peak.

Traders eye the $3,900 level as a potential profit-taking zone, while noting the metals sector's underperformance relative to other risk assets. The liquidation-driven drop below $4,000 has further accelerated declines, creating a challenging environment for gold bulls.