Gold Bounces Back Above $4,400, But Bears Remain in Control

Gold prices have bounced back above $4,400 after a decline in recent days. However, analysts are cautioning that this rebound may not necessarily signify a turnaround in price momentum for the precious metal.

The technical picture is still bearish, with gold's near-term bias having turned more bearish since late August. The 100-hour and 200-hour moving averages have fallen back below previous highs, indicating a short-term downtrend.

For buyers to establish a stronger momentum to climb higher, they need to break through the key near-term resistance level at $4,422-34. However, even then, the 200-day moving average at around $4,537 will likely cap any upside run in the short term.

The fundamental story remains unchanged, with higher real yields and the US-Iran conflict still weighing on gold prices. The debasement trade has taken a backseat for now, but may regain importance once inflation worries and fiscal risks return to the forefront.