Planning to buy gold this week? Prices steady near $4,000 with floor forming

Dubai: Gold is settling just above $4,000, giving buyers a window to watch whether the market confirms a floor before attempting another push higher. Traders expect price swings to remain contained over the next stretch while the market cools from its recent rally. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Gold ended the week at $4,011 an ounce, down 2.3%, yet still up 54% this year. The pullback follows a sharp surge in October that pushed the metal into stretched territory.

The World Gold Council notes that the metal looks to be pausing rather than reversing. Gold “looks to have entered a consolidation phase to unwind the historical overbought condition, which we view as a healthy development in the core uptrend.”

For buyers, the focus sits on whether support around $3,777 to $3,729 holds. A break above $4,158 to $4,162 would suggest momentum is building again toward recent highs.

Flows underline a market catching its breath. Exchange-traded gold funds continued to experience outflows across regions, and options traders trimmed their bullish bets following profit-taking. Volatility remains elevated, but the worst of the surge appears to be easing.

The coming days will bring limited US economic data due to the government shutdown, leaving markets to rely on private surveys and policy comments for direction. Political noise remains high, with state-level election results and budget talks in Washington expected to inject headline shifts. Betting markets currently see “little chance of a resolution this week” to the funding impasse.

Underlying demand remains supportive. Global gold demand, including OTC flows, reached 1,313 tonnes in the third quarter, a 3% increase year on year, marking the strongest quarter on record for both demand and average price. The Council pointed to “gold investment strength more than offsetting fabrication weakness.”

For those looking to enter the market, analysts suggest patience rather than urgency. The current range indicates a market stabilising after a steep run, not breaking the trend. A firmer floor and clearer signals on macro conditions could shape a cleaner entry point.

With geopolitical risk still simmering, bond volatility elevated and data flow disrupted, gold retains a defensive role. The broader uptrend remains intact, and the market appears to be preparing for its next directional move once near-term froth subsides.