Gold price tests $4,000 support as correction concerns grow

Gold enters the new trading week in a difficult position, with the metal continuing to probe the possibility of slipping under $4,000. Whether buyers can defend that region is shaping up as a crucial test if there is to be any chance of a bounce heading into the close of October trading.

Geopolitical risks remain a factor and Treasury yields have pulled back recently, yet gold has still found little upward momentum. The rally seen in August and September has completely unwound, and the metal is now carving out a sequence of lower peaks and lower troughs while sellers slowly assert more control.

So far, the $4,000 line is holding, with quotes hovering near $4,007. This is not yet a confirmed technical break, in my view, but repeated tapping of such a key support area without a solid rebound would hardly be reassuring.

An extra layer of protection for the $4,000 mark is offered by the swing lows in the $3,942-60 area. Still, a decisive move below the round number, particularly with a convincing daily close beneath it, could be enough to accelerate selling in the precious metal.

A break of that kind could then open the door to a larger pullback toward the 100-week moving average, now around $3,870. That indicator stands out to me because gold has not touched its 100-week moving average since October 2023, and the level also lies not far from the lows recorded between October and November 2025. If selling pressure builds, this zone could become an important place for buyers to rebuild.

The immediate task for gold buyers remains defending $4,000 and constructing a more credible rebound. The first barrier on the upside is reclaiming the 100-hour and 200-hour moving averages at $4,076 and $4,114. From there, a return above $4,117 and the tougher $4,200 level would be a sign that downward pressure is starting to fade. Until that happens, the risk balance for gold still leans to the downside.

The one positive for the bulls at this stage is that no actual breakdown has occurred yet. The $4,000 level is the decisive point, separating a market that is merely under strain from one that may still be able to stage a recovery. Everything ultimately comes down to whether buyers can defend that round number.