Gold Breaks Resistance at $4,450 Amid Fed Tension

Gold has rebounded strongly this month, up about 10% to around $4,400, after plummeting nearly 18% from its January record near $5,600. The selloff appears to be over.

The upcoming Fed minutes from the July 28-29 meeting and Jackson Hole conference could either fuel or stall gold's momentum. Markets have already reduced September rate-hike odds to around 40% after disappointing July nonfarm payrolls data.

China's central bank added approximately 20 tonnes of gold in July, marking its 21st consecutive month of purchases. This suggests a structural bid underlying the metal.

The daily chart shows gold bottoming after its sharp correction from the January highs and reclaiming its short- and medium-term moving averages. The key breakout came when gold pushed through the previous moving-average resistance cluster at $4,135-$4,158.