XAUUSD, Time frame: 4H, Tools: SMA100XAUUSD, Time frame: 4H, Tools: SMA100

Gold Technical Analysis

Gold continues to trade within a sideways range, with support near $4,070 per ounce and resistance around $4,230. The chart shows this consolidation unfolding within a broader downtrend. The following technical factors provide further insight:

  1. Gold has rebounded from near $4,070, which marks a previous low recorded at the beginning of the month.
  2. Meanwhile, the area around $4,230 remains a resistance zone that gold has failed to break above over several sessions.
  3. The descending trendline remains important to monitor, with the 100-period SMA reinforcing this technical barrier.

Overall, gold continues to trade sideways, with attention focused on how prices respond to resistance at $4,230 and support at $4,070.

Gold Fundamental Analysis

Gold fell around 1.3% in Wednesday’s session to settle near $4,104 per ounce, before recovering all those losses today to trade around $4,160. 

The rebound was supported by a weaker U.S. dollar and lower oil prices. Yesterday’s inflation data came in above expectations, increasing bets on a U.S. interest rate hike. Attention now turns to the Producer Price Index (PPI), due later today, with monthly producer price inflation expected to rise to 0.6% in September, up from 0.4% in August.