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Gold futures fell to $4,321.80 an ounce on Monday, their biggest decline since March, with Ed Yardeni, founder of Yardeni Research, identifying $4,000 as a potential support level.



Gold prices extended their decline after a 3% drop on Friday, marking the metal’s biggest one-day fall since March 26. The precious metal also posted a 4.9% weekly loss, its steepest weekly decline since the week ended March 20, reported MarketWatch on Monday, citing Dow Jones Market Data.



Bart Melek said on CNBC that stronger-than-expected payroll data is increasing gold's cost of carry, which could weigh on the metal's appeal.



Ed Yardeni highlighted that gold dipped below its 200-day moving average of $4,443.4 per ounce on Friday. “We reckon the next support is at $4,000,” Yardeni conveyed to clients in a Sunday note, asserting that they are not giving up on their bullish outlook on gold.



Yardeni expects gold’s rally to resume once the Iran conflict ends, forecasting prices to reach $5,500 by year-end and $10,000 by the end of the decade.



Ole Hansen, head of commodities strategy at Saxo Bank, concurred with Yardeni’s views, stating that the technical picture for gold has become more challenging. He pointed out that the recent bullish behavior of investors, coupled with a sharp reduction in bearish stances, has left gold “increasingly vulnerable to a technical setback once key support levels gave way,” according to the report.



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<h2>Gold Sell-Off Sparks Market Caution</h2>



The recent fall in gold prices contradicts the common belief of gold being a safe haven during geopolitical risks, as seen during the Iran war. 



Furthermore, the metal’s dip below its 200-day moving average, typically viewed as a bearish signal, has put traders on alert. However, historical data from the last 10 times gold fell below its 200-day moving average suggests that short-term weakness has often been followed by stronger long-term performance, indicating a buying opportunity.



Price Action: On a year-to-date basis, SPDR Gold Shares (NYSE:GLD), iShares Gold Trust (NYSE:IAU), VanEck Gold Miners ETF (NYSE:GDX) fell 0.51%, 0.42%, 8.04%, respectively. 



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image via Shutterstock



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GLDM

Gold prices dropped sharply, falling below the 200-day moving average to $4,321.80 due to strong US payroll data boosting rate expectations. Ed Yardeni identifies $4,000 as potential support but remains bullish, forecasting $5,500 by year-end and $10,000 by decade's end once geopolitical tensions ease. Other analysts note increased vulnerability to technical setbacks.

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SPDR Gold Shares

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Ed Yardeni Warns Gold Could Sink To $4,000 After Sharpest Weekly Decline In Months—But Doesn't Stop Being Bullish