Gold futures for January 2027 fell on Tuesday; analysts highlighted $4,000 as the key level to watch for the precious metal.
- KCM Trade chief market analyst Tim Waterer told Reuters a convincing move above $4,000 per ounce would signal improving momentum for gold.
- Oil prices rebounded after The Wall Street Journal reported U.S. strikes on Iran’s Qeshm Island, renewing concerns about escalating conflict.
- Ole Hansen of Saxo Bank noted renewed selling for gold near $3,970 an ounce.
Gold and silver prices fell sharply on Tuesday, dragging precious metal-linked ETFs lower, as investors weighed the potential impact of the U.S. midterm elections, renewed tensions in the Middle East and rising oil prices.
The iShares Silver Trust (SLV) was down 3.2% to its lowest in nearly 52 weeks, while the SPDR Gold Shares (GLD) slipped more than 1.1% in pre-market trading.
Gold futures for January 2027 deliveries fell 1.4% to $3,929.80 per ounce, while silver contracts expiring in January 2027 crashed 3.8% to $49.20 per ounce.
Retail sentiment for GLD on Stocktwits was ‘bullish’ over the past 24 hours, and ‘extremely bullish’ for SLV.
Investors Eye Mid-Term Results, $4,000 As Key Triggers For Gold
Ole Hansen, head of commodities strategy at Saxo Bank, noted that gold saw renewed selling near $3,970 an ounce, a former support level that has turned into resistance.
“The rejection highlights fragile sentiment, with technical and momentum-driven selling continuing to outweigh longer-term investor demand. Attention now turns to today’s US midterms, global equities, Middle East developments, and energy prices,” Hansen said in a post on X.
Meanwhile, KCM Trade chief market analyst Tim Waterer told Reuters a convincing move above $4,000 per ounce would signal improving momentum. He also added that a Democratic sweep in the midterm elections could increase regulatory pressure on technology companies and AI data centers, potentially triggering a broader tech selloff, which could in turn spur a selloff in gold to cover losses.
“Any further pressure on the tech complex from increased regulatory scrutiny could spill over into gold as positions continue to be cut to cover losses elsewhere,” Waterer added.
World Gold Council Cuts Investment Growth Outlook
On Tuesday, the World Gold Council lowered its full-year 2026 forecast in gold investment demand to 200 metric tons (MT) from 400 MT, citing weaker demand for gold bars and coins during the second half of 2026.
According to its third-quarter (Q3) report, demand for bars and coins fell 19%, as investors held back amid uncertainty over gold prices.
Oil Rebounds Following Reported U.S. Strikes On Iran
Meanwhile, oil prices rebounded on Tuesday after plunging more than 7% in the previous session, after The Wall Street Journal reported U.S. strikes on Iran’s Qeshm Island, renewing concerns about escalating conflict and potential supply disruptions. However, U.S. President Trump has reportedly downplayed talks of an escalation, stating that he was in “no rush” to ramp up strikes on Iran.
January Brent crude futures rose more than 1% to $105.85 per barrel, while West Texas Intermediate (WTI) crude for January 2027 deliveries gained 1.5% to $96.2 per barrel.
The United States Oil Fund LP (USO) was up 2.3% at the time of writing.
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