Gold Seeks Next Resistance at $4,485 Ahead of U.S. Inflation Report
The gold price has reached its highest level since June 5, briefly climbing above $4,400 on Tuesday. Spot gold is now trading at $4,374.82 per ounce, while U.S. gold futures are at $4,435. The rally follows weaker U.S. employment data that reduced expectations for another Federal Reserve rate increase.
The next major test comes Wednesday with the release of the July Consumer Price Index report. A softer-than-expected inflation reading could reinforce expectations that the Fed will avoid further tightening, potentially weighing on the dollar and supporting gold.
Gold is trading above its moving averages and has pushed through a key support area at $4,370. The first major upside barrier sits at $4,485, followed by $4,540. A sustained four-hour break above $4,485 would strengthen the case for a move toward $4,500-$4,540.
The World Gold Council's midyear outlook suggests that gold could reach $4,500 or above during the second half of 2026 if interest-rate expectations shift downward or geopolitical stress increases. However, momentum is becoming stretched, with the chart's 14-period RSI around 72, raising the risk of consolidation after the sharp rally.