Central bank speeches and US payrolls data could determine gold’s near-term direction.
The technical outlook stays bearish unless prices reclaim key resistance above $4,100.
has slipped back below the symbolic $4,000-an-ounce level this week, touching around $3,960 on Tuesday morning, its lowest level in eight months.
The decline has been driven largely by expectations that US monetary policy could remain tighter for longer. Federal Reserve Chair Kevin Warsh’s hawkish tone has strengthened expectations of a rate hike before year-end, supporting the US dollar while reducing the appeal of non-yielding assets such as gold.
Investors are also focused on Thursday’s US nonfarm payrolls report, which could reshape expectations for the Fed’s policy path depending on the strength of the labor market.
Despite ongoing geopolitical tensions between Washington and Tehran, safe-haven demand has taken a back seat. For now, interest rate expectations remain the dominant force driving gold prices.
Will a test of the $4,000 level attract buyers?
From a technical perspective, the move below $4,000 is an important bearish signal, particularly after several consecutive weeks of weakness. Even so, the breakdown has yet to be confirmed. The next major support zone lies around $3,885 to $3,900, an area that acted as a floor in late October 2025 and has not yet been revisited during the current correction.
The technical picture also suggests that selling pressure may be easing. The RSI is approaching oversold territory, a signal that the recent downtrend could be losing momentum.
Fundamentals continue to provide support as well. Central bank demand remains strong, with surveys from the World Gold Council showing that many monetary authorities still plan to increase their gold holdings over the coming year. At the same time, despite lowering some of their price targets, major investment banks such as Goldman Sachs, ING, and Deutsche Bank continue to forecast gold prices above current levels by year-end.
Taken together, these factors suggest the recent decline may represent a corrective phase after several years of strong gains rather than a lasting reversal of the long-term trend.
Is now the time to buy gold stocks?
As gold tests the $4,000 level, gold mining stocks are coming back into focus. These companies typically amplify movements in the price of gold, rising more during rallies but also falling more sharply during corrections. Following the recent selloff, many mining stocks have underperformed the metal itself.
For investors who expect gold to rebound, the current weakness in the mining sector could present an opportunity to gain leveraged exposure to a recovery in bullion prices.
We therefore turned to the Investing.com screener to identify stocks that meet the following criteria:
Market/Stock Exchange: United States
Market Capitalization: Over $5 billion
Metals and Mining Industry
Upside potential > 20% according to InvestingPro Fair Value
Optional criterion: Financial Health Score > 3
This search has identified 7 opportunities:
Specifically, these gold stocks with strong financial health are currently undervalued by 20.6% to 54.7%.
Among these stocks are:
PAAS: Pan American Silver Corp () is one of the world’s largest precious metals producers, with mining operations across the Americas. The company delivered strong quarterly results, with revenue rising 49% year over year to $1.15 billion and adjusted EPS topping expectations. Record free cash flow strengthened its balance sheet and supported an enhanced capital return strategy, making PAAS an attractive way to gain exposure to a potential rebound in precious metals.
CDE: Coeur Mining Inc () offers a higher-risk, higher-reward profile. The company posted record quarterly revenue of $856 million following the integration of the New Afton and Rainy River assets, while adjusted EBITDA climbed sharply. Management also introduced its first dividend and expanded its share buyback authorization, highlighting growing confidence in cash generation as gold and silver prices stabilize.
However, many other stocks on this list offer more attractive profiles, whether in terms of yield, valuation, or both.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.
