{"id":441228,"date":"2026-10-30T17:40:12","date_gmt":"2026-10-30T10:40:12","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/gold-gets-hit-again-by-forced-liquidations-as-equity-losses-mount-fundamental-outlook-increasingly-positive-441228\/"},"modified":"2026-10-30T17:40:12","modified_gmt":"2026-10-30T10:40:12","slug":"gold-gets-hit-again-by-forced-liquidations-as-equity-losses-mount-fundamental-outlook-increasingly-positive","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/gold-gets-hit-again-by-forced-liquidations-as-equity-losses-mount-fundamental-outlook-increasingly-positive-441228\/","title":{"rendered":"Gold gets hit again by forced liquidations as equity losses mount; fundamental outlook increasingly positive"},"content":{"rendered":"
\n

Gold came under
\n renewed pressure yesterday as another selloff in equities weighed on precious
\n metals. Gold has been tightly correlated with the stock market recently, with
\n the latest losses seemingly driven by investors liquidating positions to cover
\n losses elsewhere in their portfolios. <\/p>\n

Chart: You
\n can see the correlation between the Nasdaq (blue line) and gold (candlesticks)<\/p>\n

\n

To understand the
\n mechanics, imagine that an investment fund holds stocks, gold and government
\n bonds. Some stocks suddenly crash, and the fund suffers losses on leveraged
\n positions. The fund may need to raise cash to meet margin calls, reduce
\n leverage or satisfy investor redemptions. Rather than selling only the assets
\n that caused the losses, it may sell whatever it can liquidate quickly. Gold is
\n particularly useful in this situation because it is highly liquid and can be
\n sold quickly.<\/p>\n

The main drivers
\n like real yields have been actually pointing to higher gold prices. In fact,
\n real yields fell significantly as inflation expectations remain roughly
\n unchanged given the increase in oil prices, while nominal Treasury yields fell as
\n the losses in the stock market triggered a flight to safety. <\/p>\n

We can also see
\n the unusual divergence between spot gold and the ETFs holdings in the chart below.
\n Generally speaking, spot prices lead ETFs inflows and outflows, but in this case,
\n I think it\u2019s technical factors capping the upside in gold, not fundamental
\n ones. <\/p>\n

\n

Once the artificial selling stops weighing on gold, we could see a
\n strong and quick rebound. We are also approaching a generally favourable seasonal period between December and January. The hard part is timing. Traders could lean on key
\n technical levels or wait for a fundamental catalyst. Potential catalysts
\n include a breakthrough in US-Iran negotiations, dovish Fed comments or weaker
\n US data.<\/p>\n

GOLD TECHNICAL ANALYSIS \u2013 DAILY TIMEFRAME<\/p>\n<\/p>\n

On the daily chart, we can
\n see that gold<\/a>(CFD contract) has extended the
\n losses and it\u2019s approaching the major support zone around the 3,885 level. If
\n the price gets there, we can expect the buyers to step in, with a defined risk
\n below the major upward trendline, to position for a rally into new record
\n highs. The sellers, on the other hand, will look for a break below the
\n trendline to increase the bearish bets into the 3,500 level next.<\/p>\n

GOLD
\n TECHNICAL ANALYSIS \u2013 4 HOUR TIMEFRAME<\/p>\n<\/p>\n

On the 4 hour chart, we can
\n see the price broke below the minor upward trendline yesterday and extended the
\n drop as the sellers increased the bearish bets into the 3,885 level. If we get a
\n rebound before the 3,885 level, we can expect the sellers to lean on the
\n downward trendline, with a defined risk above it, to keep pushing into new
\n lows. The buyers, on the other hand, will look for a break higher to open the
\n door for new highs and position for a rally into the 4,400 level next.<\/p>\n

GOLD TECHNICAL ANALYSIS \u2013 1
\n HOUR TIMEFRAME<\/p>\n<\/p>\n

On the 1 hour chart, we
\n have a minor downward trendline defining the bearish momentum on this timeframe.
\n We can expect the sellers to continue to lean on the trendline, with a defined
\n risk above it, to keep targeting new lows. The buyers, on the other hand, will
\n look for a break higher to position for a rebound into the major downward
\n trendline. The red lines define the average daily range<\/a> for today.<\/p>\n

UPCOMING CATALYSTS<\/p>\n

Today<\/a>we
\n conclude the week with the US Employment Cost Index.<\/p>\n

This article was written by Giuseppe Dellamotta at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Gold came under renewed pressure yesterday as another selloff in equities weighed on precious metals. Gold has been tightly correlated with the stock market recently, with the latest losses seemingly driven by…<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-441228","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/441228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=441228"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/441228\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=441228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=441228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=441228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}