Gold Price Volatility: COMEX Reaches $4,500 Twice, Pulls Back Amid Mixed Signals
The gold price surged to a two-month high of $4,449.39 per ounce on August 13 before sharply retracing and closing down 1.3% at $4,350.88.
This volatile movement was driven by a tug-of-war between bulls and bears, with cooling inflation data reducing expectations for Federal Reserve rate hikes and ongoing geopolitical tensions in the Strait of Hormuz introducing uncertainty.
The repeated failure to break through the strong resistance level of $4,500 has triggered profit-taking selling pressure, weighing on spot gold performance and pushing prices into a range-bound oscillation pattern.
According to Stephen Brown, Chief North America Economist at Capital Economics, 'It now appears that the likelihood of the FOMC raising rates as early as September has significantly decreased.'