Gold Price Forecast: Gold Rebounds Nearly 2% After Falling Below $3,900; Has a Short-Term Bottom Formed? - TradingKey

AI desk brief

Gold rebounded to around $3,955 in Asian trade after briefly falling below $3,900 and hitting a one-year low near $3,870 on Oct. 30. The bounce was driven by an 8.01% drop in Brent, a softer dollar, and a modest easing in December Fed hike odds to 73% from 81.6%, though sticky inflation and strong ISM manufacturing data kept rate-risk alive.

Technically, the move repaired oversold conditions but has not confirmed a lasting bottom: gold remains capped below the 5-day moving average, with RSI only recovering to about 37. Key downside support is cited at $3,850, then $3,560 if that level breaks; on the upside, bulls need a clean reclaim of $3,970 to challenge $4,026 and then $4,080.