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Gold pauses near 4,450 as Fed tightening bets cool
Gold is holding above the 4,317.72 support level, while upcoming US employment and inflation data, and a US-Iran truce deadline, are flagged as the next catalysts.
Gold’s rally has stalled near major technical resistance around 4,450, with prices rejecting near 4,449.73, according to Action Forex. Despite the pause, follow-through selling has been limited, suggesting consolidation rather than a full reversal.
The article points to gold’s resilience above 4,317.72 horizontal support and above the 55 4H EMA around 4,311.63. That price action is attributed to a macro backdrop that has shifted over the past month.
Action Forex says gold’s main driver has been a sharp reduction in expected Fed tightening. It notes that odds for a September hike have fallen from roughly 60% earlier in the month to about 25% to 30%, after softer-than-expected inflation reports.
Looking ahead, Action Forex identifies early-September US employment and inflation data as a key test for whether the Fed can keep any further tightening limited. It also flags the 60-day US-Iran truce deadline as another potential catalyst before those US releases arrive.
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