Gold Price Forecast: Mass Liquidation Puts $3,886–$3,708 in Play - FXEmpire

AI desk brief

Spot gold is under renewed pressure, trading toward $3,886.46 after breaking prior swing lows at $3,975.65 and $3,942.10. The selloff is being driven by stronger-than-expected U.S. GDP and hotter PCE inflation, which lifted December Fed hike odds to 74.1% and kept real-rate expectations bearish for bullion.

Technically, the daily and weekly trends remain down while price sits inside the long-term retracement zone at $4,069.54 to $3,707.83. A close back above $3,995.81 would be the first sign of a reversal bottom, while failure there keeps $3,886.46 and then $3,707.82 in play.