Gold US-Iran crisis concerns kept bullion near monthly lows, even after soft US inflation data pushed down July Fed rate hike odds.
Recent US CPI and PPI readings came in softer than expected, according to the source article. That should translate into a 0.2% monthly rise in Core PCE. As a result, markets repriced rate expectations, and the probability of a July Fed rate hike fell to 10%.
Gold jumped after the soft CPI report. However, it could not hold those gains, and the weaker PPI data also failed to lift the metal. The source said the US-Iran crisis remains the main factor in the background.
Gold US-Iran Crisis Sets Short-Term Tone
In the near term, the source said headlines tied to the US-Iran crisis should matter more for gold. De-escalation could support the metal and drive a rally to new highs. In contrast, any further escalation could pressure the market and send prices to new lows.
On the daily chart, gold still trades close to monthly lows despite the softer CPI and PPI reports. If price pulls back to the trendline, sellers may step in with risk defined above that line. The source said that setup targets a move toward 3,885.
Buyers, meanwhile, would look for a break above the trendline. That could open the way for a move toward the next trendline near 4,500.
Key Gold Levels in Focus
On the four-hour chart, a minor downward trendline marks the recent bearish move. Sellers are likely to keep leaning on that line, with risk defined above it, to press for fresh lows. Buyers, however, would need a break higher to extend the pullback toward the major downward trendline.
On the one-hour chart, the source highlighted minor support around 4,015. Buyers may step in near that zone, with risk defined below it, to aim for a rally toward the major downward trendline. Sellers, meanwhile, would watch for a break below support to add bearish positions and target 3,885 next.
The source also said the red lines on the chart mark today’s average daily range. Later today, markets will watch US retail sales and jobless claims. Tomorrow, attention will turn to the University of Michigan Consumer Sentiment survey.
You can access our other news on natural gas markets and global market developments here.
Source: InvestingLive
