Societe Generale strategists report that gold has extended its recent pullback after failing to maintain levels above the 200-day moving average, which is positioned near $4,510–$4,540 [1]. The price is now drifting toward an interim support projection around $4,095, which is identified as a potential key level [1]. If gold cannot overcome the recent pivot high at approximately $4,225, the decline is expected to continue [1].
The analysis highlights that the $4,095 level is a crucial interim support, and a failure to hold above this threshold could open the way for further downside toward $4,000 and the June/July troughs at $3,960–$3,940 [1]. These levels mark the lower boundary of a critical multi-month support range, and their breach could indicate a deeper bearish trend for gold [1].
Traders are advised to closely monitor price action near these support zones, as a decisive break below them may signal an acceleration of the downtrend [1]. No specific market reactions or analyst opinions beyond the Societe Generale technical outlook are provided in the source [1].
CONCLUSION
Societe Generale's analysis underscores the importance of the $4,095 and $4,000 support levels for gold. A failure to defend these zones could trigger a deeper bearish move, making them critical for traders to watch in the near term.