Throughout July, I had been noting the repeated failed attempts from gold bears to sustain a break below 4,000. And when a level won't budge, the market has a tendency to eventually go the other way.
Gold's rejection near $4,450 and converging moving-average resistance raises pullback risk, while key support levels will determine whether the broader recovery remains intact.
Gold slips as US Dollar recovers despite softer US factory inflation
Gold breakout: The Gold reserve race has started [Video]
Gold Got Everything It Wanted and Still Could Not Hold the High Spot gold hit $4,449.83 Thursday morning and gave back nearly $86 in a matter of hours. CPI was soft Wednesday.
The gold market initially rose on Thursday but continues to see a bit of gravity enter the picture, as the markets may have gotten a bit ahead of themselves.
Gold Price Forecast: XAU/USD stands tall at two-month highs above $4,380
The US CPI report for July was rather benign and that's not giving market players all too much to work with as we get into the second half of the week.
Gold retreats from two-month high as traders await US PPI
Gold price edged lower from new 9-week high in early Thursday trading as positive impact from lower inflation in July started to fade while investors focus on US Producer Price Index data (due later today) which would provide more details about the Fed's policy outlook.
Gold outlook: Bulls take a breather under new multi-week high ahead of US economic data