Gold Price Tests Bulls as Two-Week Decline Brings XAU/USD to Inflection Point
The gold price has been on a sharp decline over the past two weeks, reversing nearly 9% of its August advance. This sharp reversal has brought XAU/USD back to an important inflection point, testing the bulls' ability to regain control and revive the broader recovery.
Bulls have defended support at the 2026 yearly open, with the September range taking shape just above this level. The August breakout remains technically viable for now, but bulls need to stabilize the current decline to preserve the broader recovery.
The focus is now on whether bulls can regain control and revive the broader recovery, with key U.S. inflation data next week providing a catalyst for the next major directional move. A hotter-than-expected inflation report could tip expectations more decisively toward additional tightening, fueling another rise in Treasury yields and the U.S. dollar while increasing pressure on gold.