Gold Price Stuck Below $4,100 as Stronger Dollar Weighs on Sentiment
The gold price (XAU/USD) is struggling to extend its recent gains above the key psychological resistance level of $4,100. As of current trading, spot gold is hovering just below this threshold, caught between a firming US dollar and ongoing safe-haven demand.
The inability to close decisively above $4,100 suggests that bullish momentum is waning after a strong rally earlier in the week. Several factors are contributing to this stalemate, including the recent recovery of the US Dollar Index (DXY) and expectations of prolonged higher interest rates from the Federal Reserve.
From a technical analysis perspective, gold is trading within a narrowing range. The immediate resistance remains at the $4,100 round number, while immediate support is located at the $4,050 area. A break above $4,100 could open the door for a test of the next resistance zone near $4,150.