Gold has come under renewed pressure after losing part of its positive momentum, with analysts warning that the precious metal could face further decline in the short term. According to technical analysis cited in the reports, the price recently approached the important support level of 4,300 dollars per ounce, showing that sellers continue to dominate the market and that the short-term downward trend remains active.
The pressure is also visible because gold is trading below its 50-day exponential moving average, which is currently acting as resistance and limiting attempts at recovery. Technical indicators show weakening positive momentum, while relative strength indicators point to reduced buying pressure. Analysts therefore believe that the risk of further correction remains present unless gold manages to recover more strongly above current resistance levels.
At the same time, several analysts argue that the recent correction does not necessarily mean the end of gold’s longer-term upward trend. After reaching record highs above 5,500 dollars per ounce at the beginning of 2026, gold fell by more than 15 percent in May compared with those peaks. However, some experts see the decline as a result of short-term market pressure rather than a fundamental change in the broader trend.
The main reasons for the recent weakness include the stronger U.S. dollar, higher inflation in the United States, rising energy prices and geopolitical tensions in the Middle East. These factors increased expectations that U.S. interest rates could remain high for longer. Since gold does not generate interest like bonds or savings instruments, higher rates usually reduce its short-term appeal for investors.
