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Gold falls to a seven-week low as $4,200 support breaks

Analysts at OCBC say gold’s break below $4,200 has intensified technical selling, with near-term direction tied to oil and US rates.

Reported · Written up by our desk · Precious Metals

Gold prices have extended their decline to a seven-week low after a break below the $4,200 level, according to commentary cited by FXStreet. OCBC’s Christopher Wong said the move is being driven by higher oil prices, firm US Treasury yields, and a stronger US dollar.

Wong added that concerns around inflation and expectations for further Fed tightening are reinforcing the pressure on gold. He said technical selling accelerated after gold fell through $4,200, with daily momentum remaining mildly bearish and the RSI lower.

OCBC flagged additional downside risk, warning that failure to regain $4,300 to $4,350 could keep bearish pressure in place. The next supports highlighted are $4,100, $4,000, and $3,944, while resistance is seen around $4,300 and $4,460.

Latest closeGold $4,157.80 ▲0.4%

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