Gold prices have declined by 31% from a January peak of $5 598 to a low of $3 870 on October 30. The metal has since recovered to approximately $4 136 following US midterm election results that weakened the dollar.
The decline is attributed to six factors: a hawkish Federal Reserve, rising Treasury yields, higher oil prices, forced selling during market volatility, ETF outflows, and reduced demand for gold jewelry in China.
Data from the World Gold Council shows a $1.21 billion net outflow from gold ETFs in the week ending October 23. Meanwhile, Chinese gold jewelry consumption dropped 33.9% year-on-year in the first nine months of 2026.
Technically, gold is trading below its 200-day moving average of $4 468. Analysts are monitoring key resistance levels at $4 145 and $4 211, while support remains in the $3 900 to $4 000 range.
Market participants are awaiting upcoming macroeconomic indicators, including the US jobs report and the CPI data scheduled for November 10, alongside the Federal Reserve meeting on December 8–9.
