Gold Pulls Back as Markets Await ECB Decision and Reassess Fed Expectations

Gold prices retreated from their highs this week as investors await the European Central Bank's decision and reassess expectations for the Federal Reserve meeting next week.

The recent rally in gold was supported by softer inflation data and a weaker US dollar, but the current consolidation phase reflects a broader reassessment of monetary policy expectations rather than a deterioration in the underlying macro backdrop.

Despite the decline, technical indicators suggest that the medium-term bullish trend remains intact. The 200 EMA continues to rise below current prices around the 4080 area, indicating that the downward momentum is becoming increasingly stretched.

The current pullback has returned gold price toward the 4100-4110 participation zone, where buyers are beginning to test an important area of technical support. A confirmed break above this level could reopen the path toward the recent highs near 4175.