FOREX.com analyst Fawad Razaqzada said gold's near‑term outlook is bearish after the metal slipped below its 200‑day simple moving average. The break signals a technical deterioration that followed last week’s selloff, pushing spot gold to $4,318 per ounce, down 0.3% in early Asian trade. Investors view the dip as a barometer for rising inflation worries tied to Middle‑East tensions.

Razaqzada identified the next major support near a long‑term ascending trend line at $4,230 an ounce. Below that, price cushions thin, with the March low around $4,100 representing the next barrier. If sellers hold momentum, the chart suggests a sharper decline could unfold, testing those sparse levels. Such a move would pressure portfolios that depend on gold as an inflation hedge.

Hola Prime chief Somesh Kapuria linked the drop to heightened inflation expectations as geopolitical friction fuels fears of tighter monetary policy. While central banks continue buying gold, those purchases may only blunt the downside. With spot gold hovering just above $4,300, the metal faces a decisive test that could reshape allocation strategies for risk‑averse investors. Market watchers will track the next support level closely.