Gold Price Forecast: Gold Plunges to Seven-Week Low, Can $4,100 Hold? - TradingKey

AI desk brief

Spot gold plunged 4% to $4,114.93/oz on Monday, its lowest since Aug. 5, as higher energy prices lifted inflation expectations, reinforced Fed tightening bets and pushed the dollar and Treasury yields higher. The break below the ascending trendline and the 20-day/$4,324.72 and 60-day/$4,275.92 moving averages leaves short-term control with bears.

Key support is $4,100–$4,104, including the 78.6% Fibonacci retracement at $4,104.22; RSI is at 36.07, so downside momentum remains strong but is nearing oversold territory. A hold above $4,100 could allow a rebound toward $4,200–$4,231, while a decisive break below $4,100 would open $4,000 and then $3,942.