Gold prices fell more than 3% on Wednesday as markets continued to digest President Donald Trump's softened rhetoric regarding the U.S.-China trade war and his reversal on wanting to fire Federal Reserve Chair Jerome Powell. While gold is undergoing significant profit-taking, analysts emphasize that the long-term bull trend remains largely intact. Spot gold last traded at $3,281.94 an ounce, down nearly 3% on the day. Prices are now more than 6% below Tuesday’s highs of $3,500. Nevertheless, gold remains up over 25% year-to-date and nearly 41% over the past 12 months. “As far as the gold outlook is concerned, the precious metal has dropped quite a bit in the last couple of days, but that is still merely a drop in the ocean compared to how much it has gained,” said Fawad Razaqzada, Market Analyst at StoneX Group, in a note Wednesday. “The sharp two-day pullback means gold is now down 6.8% from its all-time high, hitting a low of roughly $3,260—a significant move to the downside. However, the long-term trend remains clearly bullish.” Looking ahead, Razaqzada said that a test of support at $3,100 would prompt him to reassess gold’s uptrend. “The long-term technical outlook will only turn negative if we begin printing lower lows and lower highs,” he said. “With that in mind, keep an eye on the $2,956 level, which marked the most recent significant low before gold broke to new record highs. As long as that level holds, any short-term pullback should be taken with a pinch of salt and viewed as a potential buying opportunity rather than a signal to pursue bearish setups. However, if that level breaks, then it would be prudent to abandon a bullish bias—at least in the short term.” David Morrison, Senior Market Analyst at Trade Nation, noted that even at $3,300, gold remains technically overbought based on momentum indicators, and a deeper correction may be needed to reset market sentiment. “It’s also possible we see a more substantial pullback, with $3,000 acting as a much more significant support level. Such a move would likely flush out weaker hands, especially latecomers to the rally. If $3,000 holds, allowing the daily MACD to reset, gold could potentially mount another rally to new highs. But it’s still early, and the shape of the pullback will be crucial once it plays out,” he said.