Veteran trader Peter Brandt identified a bearish head-and-shoulders pattern on the weekly gold chart. He warns that if the price drops below the support zone of $4,100 to $4,200, it could potentially decline toward $2,890. Brandt clarified that this observation is not a definitive price forecast.
On October 10, gold traded near $4,194 per ounce, which is approximately 22% lower than the record high of $5,405 reached in January. The metal has seen a decline of about 4% since the beginning of the year. Market volatility in 2026 is currently on track to reach its highest level since 1982.
Fundamental support for gold prices continues to come from central bank activity. The People’s Bank of China has maintained a streak of gold purchases for 23 consecutive months. In a recent month, the bank added 740,000 ounces to its reserves, marking the largest acquisition since 2023.
Market participants are closely monitoring whether the current support levels will hold. Analysts suggest that investors should evaluate technical patterns in the context of broader market conditions, including shifting expectations for US interest rates and fluctuations in Treasury bond yields.
