Gold prices continued to decline on Monday, and the underlying drivers are worth paying attention to.

On the geopolitical front, there was a brief easing. Although recent talks between the US and Ukraine did not result in a concrete agreement, the signals of peace were enough to offset risk aversion sentiment. Short-term capital withdrawal from the precious metals market is a normal reaction—when risk assets regain attractiveness, gold, as a traditional safe-haven asset, naturally faces selling pressure.

Technically, the market shows a classic overbought correction pattern. On the daily chart, RSI and stochastic indicators have formed death crosses in the overbought zone, initially signaling a bearish divergence. This means that although gold prices hit new highs, the technical momentum is waning.

Looking at support levels, $4380 is the first line of defense (corresponding to the 20-day moving average near $4325). If this level cannot hold, the next key support is the trendline at $4220.

However, it is important to note that this bull market has already risen for 8 consecutive weeks. The current correction is actually a normal technical adjustment, not a trend reversal. In the medium to long term, the support from ongoing central bank gold purchases and expectations of rate cuts still exist. As long as the fundamentals remain unchanged, this kind of correction could present a better entry opportunity.