Gold Prices Plunge After PPI Release, Targeting $4,300

Gold prices plummeted after the latest PPI (Producer Price Index) release, sparking heavy selling pressure on the XAU/USD cross. Manan Trader's earlier chart drew downside levels towards $4,350 and $4,300, which Zaffar Khan confirmed as a successful call on the news.

The sharp move down in gold was attributed to the rapid sell-off following the PPI release, with two X analysts pointing to the significant decline in the XAU/USD cross. Manan Trader described the move as a 'crazy dump' and revealed a chart that suggested gold would continue to test lower levels before another significant drop.

Zaffar Khan also posted a bearish setup for the XAU/USD pair, highlighting a sell zone from $4,395 to $4,410. The analyst's chart showed two downside support levels below the highlighted sell zone: $4,350 (TP1) and $4,300 (TP2).

The price of gold was trading around $4,356.11 per ounce at the time of writing, losing $46.01 or 1.05% on the day. The daily candle range is very high, from $4,324.17 to $4,435.05, suggesting strong selling pressure during the day.

The current chart setup reveals that gold has lost momentum after rallying back to the $4,600 area in early August. If the daily close can come above $4,367.77, the bull market may improve, paving the way for prices to reach $4,450 and beyond.