Scotiabank warns a break below $4500 per ounce could trigger an $800 drop in gold prices amid thin trading conditions.
Gold remains anchored near the technically critical $4500 per ounce level, with analysts highlighting its role as key support. A downside break could signal a significant decline, potentially pushing prices $800 lower based on technical projections.
Trading volumes are subdued due to holidays in the US and UK, while broader markets show bullish sentiment. Copper prices have rebounded from recent pullbacks, and US equity futures hit fresh highs as oil prices decline by $5 per barrel. The USD continues to weaken against G10 currencies amid optimism over a potential US-Iran deal.
Analysts are closely monitoring gold’s ability to hold above $4500, as a failure to do so could accelerate selling pressure in the near term.