Spot gold prices continue to trade under persistent selling pressure across international trading desks. The precious metal has remained heavily burdened after breaking below an ascending trendline on 22 October, subsequently slicing through $3,943 to hit a fresh one-year trough near $3,870 on 30 October. Strong negative price momentum points to an ongoing risk of declines extending toward the $3,700 zone. However, analysts see a low probability that prices will sustain losses beneath that threshold over the broader horizon.
Technical Breakdown and Key Price Levels
A closer examination of the technical landscape highlights how quickly sentiment deteriorated after the initial chart break. Although spot gold penetrated the upward trendline on 22 October, downside follow-through was subdued in the immediate aftermath. That dynamic shifted abruptly last Friday, when an aggressive drop dragged the metal below $3,943 and down to the one-year low of $3,870. Addressing the potential depth of this corrective phase, Quek Ser Leang of United Overseas Bank stated,
"At this stage, the odds of a continued decline below $3,700 are not high."
European Session Decline and Strong US Economic Data
During the first half of the European session, bullion slid back beneath the $3,900 threshold, gravitating toward its weakest marks since October 2025, which were established late last week. Lingering expectations that the US Federal Reserve will pursue further monetary policy tightening remain a primary weight on the market. These rate hike concerns gained fresh traction following solid macroeconomic releases on Monday, which revealed that business activity in the US manufacturing sector expanded for the tenth straight month in October. The Institute for Supply Management's Manufacturing PMI beat consensus expectations, climbing to 55.5 in October from 54.5 recorded in the prior month.
Central Bank Divides Impact Australian Dollar and Japanese Yen
Beyond the bullion complex, currency markets are navigating volatile crosscurrents. The AUD/USD pair drifted lower for a second consecutive session on Tuesday, reaching a fresh two-week trough during the Asian trading window. The weakness arrived despite a widely projected 25 basis point rate hike delivered by the Reserve Bank of Australia. The rate decision revealed significant internal division, as three policy committee members preferred to hold the official benchmark steady at 4.60%. This split tempered market bets on additional tightening by the central bank, which, alongside modest broad-based US Dollar resilience, weighed heavily on the Australian currency.
Meanwhile, the USD/JPY pair edged lower in Tuesday's Asian hours, partially retracing the prior session's advance to 158.00. The US Dollar experienced localized softness driven by developments around Iran diplomacy and trader caution ahead of US midterm elections. Although the possibility of government currency intervention offered baseline support to the Japanese Yen, widespread ambiguity concerning when the Bank of Japan will next raise benchmark interest rates capped meaningful Yen appreciation, leaving the currency pair trapped within a familiar trading band.
Cardano Extends Losses in Cryptocurrency Segment
Digital assets were not immune to broader market caution, with Cardano extending its downward correction. ADA slipped under the $0.189 mark on Tuesday after surrendering a vital technical support band a day earlier. A mix of divergent derivatives data and cautious on-chain activity continues to undermine bullish sentiment, while deteriorating momentum indicators indicate that the cryptocurrency faces persistent downside exposure in near-term trading.
