Gold extends decline to $4,453 as bear channel deepens from April peak

Gold fell for a second consecutive day, testing the $4,453 floor of a seven-day range as a bear channel from the mid-April peak at $4,889 remained intact.

COMEX gold futures settled at $4,521.70 per troy ounce on Tuesday, down $49.54 or 1.08% in the past 24 hours, according to Forbes Advisor data. The session low reached $4,501.05.

The decline extends a pullback from the all-time high of $5,597.23 set on Jan. 29, leaving gold 19.2% below that peak. Over the past month, the precious metal has lost 3.94% of its value, though it remains up 4.79% year-to-date and 8.60% over six months, per TwelveData.

The $4,453 level represents the lower boundary of a consolidation range that has held for seven sessions. A break below that floor would open the path toward the next support at $4,400, a level last tested in early May. The fragile geopolitical situation continues to support demand, though a strengthening US dollar and hawkish Federal Reserve bets have capped upside.

The bear channel originating from the April 16 peak at $4,889 has guided prices lower over the past six weeks, with each rally attempt failing at progressively lower highs. Gold's 52-week range spans from $3,248.98 to $5,597.23, placing the current price near the midpoint of that band.

Central bank buying continues to provide a floor under prices. Global institutions are boosting gold reserves to diversify away from the dollar as ongoing trade tensions persist, according to the World Gold Council's most recent central bank survey. JP Morgan's global research forecast sees gold climbing toward $4,000 by mid-2026, a level the metal has already surpassed by more than $500.

Compared to other assets, gold has returned 35.11% over the past year versus 27.88% for the S&P 500 ETF (SPY), and 137.65% over five years versus 77.88% for equities, per TwelveData.

This article is for informational purposes only and does not constitute investment advice.