Gold entered December on a sour note, extending its decline after a 3% drop in November, marking its worst monthly performance since September 2023.

The bearish momentum persists, with prices breaking through critical technical levels during Monday’s Asian session. This sharp retreat has sparked speculation about whether the precious metal is poised for a rebound or headed for further losses.

After closing the final week of November at $2,650, gold continued its downward trajectory, falling below the intraday 100-day EMA and breaching the support of an intraday bullish channel at $2,645. Adding to the bearish sentiment, the price slipped past the 50% Fibonacci retracement level. Analysts are now closely watching the next key support at the 61.8% Fibonacci retracement near $2,600, which could act as a potential turning point.