Gold Battles to Regain Footing Ahead of Critical US CPI Report
Gold is facing an important test as it attempts to stabilize at yearly open support after a sharp pullback from its August highs. The September opening range remains intact, leaving the immediate directional outlook unresolved. To regain momentum, bulls need to reclaim resistance and shift the technical focus back toward the August highs.
The upcoming US CPI report, scheduled for tomorrow, will be closely watched as it is the final major inflation reading ahead of next week's highly anticipated Fed rate decision. A hotter-than-expected CPI print could drive Treasury yields and the US dollar higher, putting pressure on gold.
From a trading standpoint, losses below pivotal support at 4305/19 would expose subsequent support objectives, including the 61.8% retracement of the April decline at 4230. A break or daily close below this slope would suggest a more meaningful high is in place and a larger trend reversal is underway.