Gold Price Under Pressure as August Breakout Tested by US Inflation Data

The gold price has been under pressure in recent weeks, declining nearly 9% over two weeks and testing the August breakout. Bulls have defended support at the yearly open level of 4319, but a failure to stabilize the current decline could invalidate the broader recovery. The August breakout remains technically viable for now, but bulls need to regain control to preserve it.

Key U.S. inflation data next week will be crucial in determining the next major directional move in gold prices. 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.

The bulls will need to secure this decline to keep the August breakout viable in the weeks ahead. Initial resistance is eyed back at the March low-week close / 2025 high close at 4492-4533 with a breach of the August high exposing the next major technical consideration at 4855/94.