Basic overview
Gold failed to extend the rally above the protection zone around the 2723 level and pulled back as we got a technical break, and the US PPI it came in higher than expected.
In the bigger picture, market prices remained largely unchanged around three rate cuts by the end of 2025 but the rise in real yields weighed on the market as some fear the h -inflation begins to accumulate.
In addition, we have the FOMC decision next Wednesday and while the central bank is likely to be in line with market prices, we could have an overall hawkish event. Market participants might want to err on the defensive side which could prevent the upside in gold.
Gold Technical Analysis – Daily Chart
Gold every day
On the daily chart, we see that gold declined the against
zone around 2723 level and extended the fall to 2675 level as US PPI surprised to the upside. The buyers will want to see the price break above the resistance against the bullish bets to rise to a new all-time high, while the sellers will look for a technical break on lower time frames to hold entering new levels.
Gold Technical Analysis – Timetable 4 hours
Gold 4 hours
On the 4 hour chart, we can see that we have a strong support area around the 2660 level which was the resistance in the previous area. If we get a pullback into it, we can expect the buyers to step in with marked risk below the support to rally for a rally to new highs. The sellers, on the other hand, want to see the price break lower to increase the bearish bets into the 2600 level next.
Gold Technical Analysis – 1 Hour Time Table
Gold 1 hour
On the 1 hour chart, we can see that the price broke below yesterday's uptrend line that defined the bullish trend in this timeframe. The sellers went into the break and increased their momentum as the US PPI beat expectations.
We now have some consolidation around the 2680 level which could turn into a bear flag if the price goes below the front line. In such a case, we can expect another lower flow into the 2660 support. The red lines define the average daily range for today.
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