Gold did not respond well to the new 90-day deal between China and the U.S. On top of the India–Pakistan ceasefire, starting Ukraine–Russia ceasefire negotiations, Hamas–U.S. talks, and nuclear discussions with Iran, several developments are reducing global risk and weakening safe haven demand.

Many fundamental factors are starting to turn against gold. One of the key signs is the heavy profit-taking seen in the “managed money” positions in the COT report in the last several weeks. These developments are now starting to show in the price action.

The “weak double top” pattern, which is one of gold’s go-to reversal signals at major tops, gave the first warning. Since then, local support levels have been falling one by one. Gold is now testing the 3,200 level, which is expected to act as support. However, if this level breaks, the next target could be in the 3,145–3,170 range. The main medium-term target for a deeper correction remains around 3,000.

For any strong upward reaction, bulls should watch the 3,270–3,290 zone. If gold bounces from 3,200, this area could offer strong resistance and potentially cap further upside.