October 21: In the prior trading session on Tuesday (October 20), international gold closed lower after a volatile session.
As risk sentiment improved modestly, U.S. session data were broadly positive, the U.S. dollar index pulled back, and the benchmark 10-year Treasury yield declined, briefly lifting gold prices; however, after new rumors about U.S.-Iran talks were swiftly denied and amid resistance pressure, gold quickly gave back its gains, keeping the near-term outlook in a choppy corrective phase.
In terms of price action, gold opened the Asian session at $4,142.27 per ounce and traded in frequent roller-coaster swings during the day, hitting an intraday low of $4,111.92 in the European session before rebounding, then reaching an intraday high of $4,155.10 in the U.S. session where it met resistance and pulled back, finally closing at $4,125.09.
The daily range was $43.18, with a decline of $17.18, or 0.41%.
Looking ahead to today, Wednesday (October 21), international gold opened lower, extending the pullback pressure from yesterday's U.S. session, while the market focused on the meeting between Iran's president and Pakistan's army chief, Houthi attacks on Saudi infrastructure, and attacks on vessels in the Gulf.
At the same time, Iran's defense minister said the country is preparing for a fourth round of war, and geopolitical risks and inflation concerns remain, which could raise expectations for Federal Reserve rate hikes and weigh on gold.
However, the U.S. dollar index and Treasury yields are currently turning weaker, which would limit gold's downside, and gold's technical picture remains within its recent choppy correction range with downside support intact; therefore, until the correction pattern is broken, it is appropriate to keep the existing framework and trading approach unchanged.
On the technical side, at the weekly chart level, gold has rebounded from support near the rising trend channel that began in 2024 for two consecutive weeks, resembling the price action from April to August 2025; therefore, as the market continues to correct above this support, a renewed climb after the correction remains possible.
That said, upside resistance is strong, so while watching for a rebound, investors should be cautious about the room for gains, with resistance near the middle band at $4,225 and the 60-week moving average at $4,370; on the downside, watch the trendline support, and a break below would point to the $3,900-$3,700 channel support area for positioning for new highs.
At the daily chart level, gold's recent rebound has repeatedly been capped by the Bollinger Band middle band, and with multiple moving average resistances above, bears still hold the advantage; although prices are currently oscillating above the trendline, a pullback to lower lows is still expected before a breakout above resistance, so a choppy-to-weak bias is appropriate.
The following are preliminary intraday support and resistance reference levels; actual entry and exit levels are subject to real-time account notifications: Gold: downside support near $4,105 or $4,090; upside resistance near $4,145 or $4,160. Silver: downside support near $57.60 or $57.20; upside resistance near $58.70 or $59.50.
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