Gold Holds Steady at $4,113 as Bulls Face Resistance Tests
Gold's price has been holding steady at around $4,113, passing an important technical test. However, bulls still need confirmation that a reversal is underway. According to Action Forex, the Fibonacci projection of 4,113.82 was nearly matched by Gold's low at 4,110.50, preserving the view that the decline from 4,697.07 is corrective rather than a fresh impulsive selloff.
Despite softer August PCE inflation numbers, the 10-year Treasury yield remained pinned near 5.30%, leaving the long-term financial conditions restrictive for Gold. This has left bulls with two hurdles to clear: breaking through resistance levels at $4,235 and $4,335.
The Fed debate on timing rather than whether inflation has been defeated remains ongoing. With New York Fed President John Williams suggesting that 'no need for urgency' exists, while Federal Reserve Governor Lisa Cook emphasizes that inflation has been 'too high for too long', the market is looking for clarity on when to expect a reversal in monetary policy.
The next catalysts for Gold's price movement will come from ISM and NFP data. A firm ISM reading followed by stronger-than-expected NFP could revive October or broader Fed-tightening expectations, pushing Treasury yields higher again and potentially turning back Gold towards $4,110.50.