Gold faces a possible $400–$500 drop if $3,900 support fails

Colombo, founder of the BubbleBubble Report, said gold had slipped slightly below the level but had not broken it by enough to confirm a sustained breakdown. He is watching for a deeper move below support, noting that a similar dip before the midterm was followed by a rebound after some stop-loss orders were triggered.

He said the zone has held since lows in October and November 2025, and gold also touched it during sell-offs in March and in June and July before recovering. The current test leaves prices “on the cusp,” he said.

If the support fails decisively, Colombo sees an “air pocket” toward $3,400–$3,500 an ounce, with about $3,500 as the next significant level. He said liquidations tied to the technology-sector sell-off have added to pressure from higher interest rates and a stronger dollar.

The dollar index has moved above 102 and 103, Colombo said, adding that its momentum remains upward. Until the rally starts to fade, he is reluctant to call a bottom in gold. A continued strong advance in the dollar, he said, could push gold below $3,900.