Date: 7th July 2026.
Gold Slides Toward $4,000 as Tech Selloff Weighs on Global Markets.
Gold continues to decline downwards towards the $4,000 psychological price. The price of Gold is declining despite the global selloff in technology stocks and Dollar weakness. Investors continue to obtain indications of possible Gold weakness for the remaining months of 2026. The key reason for the lack of demand continues to be expectations of interest rate hikes and fears of the asset trading above its intrinsic value.
All metals trade lower during Tuesday’s Asian session, with Silver and Gold witnessing the largest declines. The US Dollar is the best performing currency of the day but has seen both up and down swings this way.
Gold - Weaker Gold-USD Correlation Indicates Lack of Demand and Momentum
Gold forms two lower highs and breaks below the most recent low, indicating a potential correction back to $4,000. Furthermore, investors have also seen a weaker correlation between Gold and the US Dollar. The US Dollar Index in 2026 has an average volatility level of 0.45%, and yesterday’s downward swing measured 0.35%. This is 78% of the average volatility. During the same period, Gold rose 0.98%, which is only 54% of the average volatility level.
The weakness in the Gold-USD correlation and lack of upward momentum provide a key indication for investors. If the price of the US Dollar Index rises above 100.84, the price of Gold is likely to witness strong short-term pressure.
Many analysts advise that the asset’s upward momentum appears unsustainable. Markets expect the US-Iran conflict to be resolved soon as diplomatic talks continue. The reopening of the Strait of Hormuz and rising shipping volumes point to normalisation in the Persian Gulf, reducing demand for safe-haven assets like precious metals.
HFM - Gold 1-Hour Chart
JPMorgan Chase continues to expect Gold to average around $4,300 in Q3 and reach $4,500 in Q4. However, many economists are revising their target price lower. These target levels largely depend on the Federal Reserve’s interest rate decisions. Currently, 23% of the market continues to expect the Fed to not hike in 2026. If the possibility of a pause rises, the price of Gold can also rise and reach these levels. If the figure falls and rate hikes become more likely, Gold is likely to fall back to previous support levels. These levels include $4,026 and $3,940.
NASDAQ - Samsung and Tech-Stocks Drive Global Indices Lower
All global indices are declining, with the NASDAQ and Asian indices particularly coming under pressure from sell orders. Certain stock exchanges in Asia this morning temporarily halted trading in order to continue the current selloff. The key reasons behind the weakness in demand are fear that the Technology Sector has become too expensive and Samsung’s earnings report.
Samsung reported a stronger-than-expected preliminary Q2 2026 earnings update this morning’s Asian session. The earnings report beat expectations by 6%, mainly driven by continued AI-related memory chip demand. Economists noted that despite the earnings beat and stronger-than-expected data, the results were not strong enough to impress shareholders, given the scale of previous AI-related investments. Furthermore, despite the record numbers, investors focused on concerns about how long the AI boom can last, sending the stock sharply lower.
Lastly, today before the US market opens, SpaceX will be added to the NASDAQ. Since SpaceX’s IPO on June 12th, the stock has seen both up and down impulse waves. The price is currently at $160.00, as per the IPO. Funds and ETFs that track the index need to buy the newly added stock, which can push its price higher in the short term.
HFM - NASDAQ 1-Hour Chart
If the NASDAQ continues to decline, traders will be keen to see the reaction of the index when the price reaches support levels. The key support levels can be seen at $29,108 and $28,944.
Key Takeaways:
Gold remains under pressure, moving closer to the key $4,000 level despite Dollar weakness.
Gold demand looks weak, with weaker Gold-USD correlation and limited upward momentum.
Rate hike expectations remain the main risk for Gold, with key support levels at $4,026 and $3,940.
Global tech stocks are selling off, led by pressure on Asian markets and Samsung’s sharp decline despite stronger earnings.
NASDAQ remains vulnerable, with traders watching support at $29,108 and $28,944, while SpaceX’s index inclusion may create short-term buying demand.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
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Michalis Efthymiou
HFMarkets
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