“We’re seeing a technical retracement against Tuesday’s heavy losses, as bears book profits and wait for the next catalyst. Hot CPI and hawkish Fed comments have revived tightening expectations,” said Matt Simpson, a senior market analyst at StoneX.
“If we see positive developments in the Middle East that would be supportive for gold from an inflation standpoint. But overall, the near-term macro setup for gold does not seem positive,” said Soni Kumari, an analyst at ANZ.
XAU/USD showed some resilience below the 200-hour Simple Moving Average (SMA) around USD 4,024, suggesting underlying support. However, spot remains capped under the 23.6% Fibonacci retracement at USD 4,080, leaving the near-term bias broadly neutral.
Meanwhile, the Relative Strength Index is around 41, indicating only downside fatigue, and the Moving Average Convergence Divergence (MACD) is recovering into positive territory.
Any further move up could face resistance near the 23.6% Fibo. at USD 4,080, above which the Gold price could climb to the USD 4,145-USD 4,150 area, where stronger supply could be expected. On the downside, immediate support is at the 50.0% retracement at USD 4,008.