Gold Market Analysis: "Gold Price Expected to Hold Steady Above 4110, Testing Higher Levels"  
October 8, 2026, 11:08 AM (Completed)

The gold price has maintained a volatile pattern of upward rallies and pullbacks. Yesterday, it sharply declined early in New York trading to $4,066.57 before gradually recovering. Nevertheless, it closed at $4,108.36—the lowest level since August 6—despite a further rebound this morning. On the daily chart, gold has already broken below the recent sideways range's lower boundary. Yesterday’s high of $4,170.12 now acts as a new short-term resistance level. Even if gold closes above this level, it would merely signal a return to the previous consolidation zone. A definitive bullish reversal would only be confirmed if gold closes above $4,280.56.

On the hourly chart, gold has broken out of its recent sideways formation and is now forming a descending channel. The upper extension of the downward trendline around $4,160 serves as the immediate resistance. According to TD sequence analysis, gold has effectively broken above the TD descending trendline on the hourly chart, with a projected target of approximately $4,184. Therefore, even if gold surpasses the resistance of the descending trendline since October 2 (currently around $4,160), it is likely to face resistance near $4,184.

Yesterday’s sharp drop caused the 9-period RSI on the hourly chart to fall as low as 18, triggering a subsequent technical rebound. However, the overall trend remains bearish. At this stage, investors should pay closer attention: large players may use the sudden decline to strengthen their bearish positions, aiming for higher profits by setting longer-term targets and taking on greater risk. This often leads them to ignore short-term reversal signals. As a result, during rebounds, they may aggressively add to their positions against the trend. When stopped out, such traders might develop a retaliatory mindset, turning their trading into emotional reactions that continue until capital is exhausted before returning to rationality.

Having a clear direction isn't problematic; however, when market conditions contradict one's position, traders should avoid going against the trend. Some apparent opportunities could simply be temporary signals generated by price adjustments. Without confirmation from a higher time frame, investors must always prepare for risk management and potential losses before entering any trade. In the short term, gold is expected to stabilize above $4,110, with increased chances of breaking through $4,160 and testing $4,185 and $4,210.

The above information is for reference purposes only and does not constitute investment advice.