Gold bulls are trying hard to stay above the major support of $4,500

Gold prices are trading marginally lower early Thursday, with upside momentum clearly weakened amid a solid resistance level. The precious metal faced renewed selling pressure following the post-FED decision highs after Federal Reserve Chair Jerome Powell adopted a slightly hawkish tone. However, gold bulls are striving to hold above $4,500 to mitigate selling pressure. As of this writing, gold has rebounded to near $4,590.

Gold Overview

This week has seen significant selling pressure on gold. Bulls were unable to sustain their upward momentum despite a recovery after hitting a new multi-month low on Tuesday. The upside retracement faded following the Fed’s hawkish stance, which sparked speculation of a rate hike in 2027. Meanwhile, investors remain concerned about a potential spike in inflation, especially as the third month of the Iranian conflict approaches. After US President Donald Trump rejected Iran’s latest proposals and reaffirmed that the naval blockade will continue until a deal is reached, efforts to resolve the situation appear stalled.

Prepare for an action-packed NY session

Gold traders should prepare for a volatile New York trading session, featuring major economic releases, central bank meetings, and month-end portfolio adjustments. For gold, attention will focus on key U.S. economic data scheduled for later today, including the Personal Consumption Expenditures (PCE) inflation and GDP figures. These reports are expected to provide insight into the Federal Reserve’s monetary policy direction. PCE inflation is particularly important as it is the Fed’s preferred inflation gauge; any surprises could quickly alter rate hike expectations.

XAUUSD Technical Outlook

From a technical perspective, the immediate support level is at $4,540. A break below this could push gold toward the next support zone near $4,500–$4,490, which represents a critical support area for the week. On the upside, $4,620 is the nearest resistance level. Clearing this resistance may trigger a short-covering rally.

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