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Gold prices experienced significant volatility during yesterday’s session, following the release of U.S. inflation data that strengthened the dollar and exerted downward pressure on gold. As noted in our previous report, a break below $3,340 reactivated the bearish scenario, which materialized after gold dipped to $3,320.
Technical Outlook – 4-Hour Timeframe:
Current intraday price action shows recovery attempts, supported by a rebound from the $3,320 support level. The 50-period Simple Moving Average is attempting to reclaim its role as dynamic support, while the Relative Strength Index (RSI) is sending positive signals, suggesting a potential return to the broader uptrend.
Probable Scenario – Bullish Bias (Pending Confirmation):
While technical signals lean toward an upside move, confirmation requires a break above $3,347—a level that has now become resistance due to role reversal. A confirmed breakout above this barrier could strengthen bullish momentum, with $3,363 as the next upside target.
Alternative Scenario – Renewed Bearish Pressure:
If gold fails to break above $3,347 and retreats back to the $3,320 support area, bearish momentum may return. A break below this level would likely push the price toward $3,317, followed by $3,310 as the next key support.
Market Catalyst:
Investors should prepare for potential volatility ahead of today’s release of U.S. Core Producer Price Index (PPI) data (monthly and annual). These figures are highly influential and may significantly impact gold prices and the U.S. dollar.
Caution:
The overall risk level remains high due to ongoing geopolitical and trade-related uncertainties. All scenarios are possible, and proper risk management is strongly advised.
Disclaimer: Trading in CFDs involves risks, and all scenarios are possible. This analysis is not investment advice but rather an interpretation of the current technical landscape for gold.
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