Gold Drops 5.5% From 3-Month High but Goldman Sachs Still Sees 10% Upside

Gold has fallen 5.5% from the 4,697 three-month high it reached on August 25, trading near 4,436 at press time. Goldman Sachs still expects 4,900 by year-end.

The slide has pushed the metal under its 200-day moving average. Barchart said gold has now recorded multiple closes below the line, the first since early June.

Gold Rally Stalls at a Level Traders Watch Closely

The 200-day moving average tracks an asset's average closing price over the previous 200 sessions. Gold now sits under that line, which stood near 4,529. The metal briefly traded below 4,400 on Monday, its weakest level since August 19.

Barchart noted that the SPDR Gold Shares fund entered a technical correction the last time gold logged multiple closes below the average. That precedent covers one prior episode, not a pattern.

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