Today's short-term resistance is at $4,643; failing to pass calls for caution against selling pressure. If it passes $4,643, it can rebound further, but if it cannot make a Higher High above $4,696–$4,673, caution regarding a correction remains. However, it is assessed as a correction for further upside, with support levels at $4,566 and $4,556–$4,500 respectively.

Investment strategy: Take profit on long positions if prices fail to pass $4,642–$4,673; if passed, delay selling until the next resistance level.

Open long positions again if price pullbacks hold above $4,566; if it breaks below, delay entering long positions until $4,556–$4,500 (Stop loss if price breaks below $4,500).

Key Factors

Gold prices rebounded back above the $4,600 per ounce level this afternoon, recovering from a morning decline driven by profit-taking. The initial sell-off followed last night's lower-than-expected U.S. initial jobless claims report, as well as de-risking ahead of the second day of the Jackson Hole Symposium tonight.

Market participants are closely watching Federal Reserve Chair Kevin Warsh's upcoming speech for further signals on interest rate projections, plans to steer inflation back toward the Fed's target, and particularly his perspective on the bond market following the Treasury Department's announcement to expand its debt buyback program.