Gold is currently moving in a range-bound pattern with choppy short-term fluctuations, leaning slightly bearish overall.
Persistently strong U.S. inflation has pushed markets to delay expectations for Federal Reserve rate cuts. The U.S. Dollar and Treasury yields remain elevated, putting notable pressure on gold prices. Rising international crude oil prices further reinforce the view that high interest rates will stay in place, weighing on gold in the near term. Meanwhile, ongoing geopolitical tensions in the Middle East boost safe-haven demand. Combined with continuous gold purchases by global central banks, sharp declines are limited. The price is trapped between solid resistance above and firm support below.
The price fluctuates sideways for the time being. Major resistance lies between 4580 and 4600, where upward momentum will likely stall and a breakout is unlikely. The key support is at the 4500 level. A break below this level will trigger further downside moves, while a hold will keep the range trade intact.
Trading Strategy
Go short between 4570 and 4590
Stop loss above 4600
Take profit: 4530 to 4500