Today's short-term resistance is at $4,633; failing to pass it calls for caution against selling pressure. A break above $4,633 allows further rebound, but if the price 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 $4,583 and $4,556–$4,500 respectively.

Investment strategy: Take profit on long positions if prices fail to pass $4,633–$4,673; if it passes $4,673, delay selling until the next resistance level.

Open long positions again if price pullbacks hold above $4,583; if it breaks below $4,583, delay entering long positions until $4,556–$4,500 (Stop loss if price breaks below $4,500).

Key Factors

Yesterday, gold closed down $65.43, pressured by a strengthening US dollar after the US reported that the July PCE index rose 3.7% YoY. This indicates that inflationary pressures persist, leading the market to raise the probability of a Fed rate hike in September to 44%, up from 36% prior to the data release.

However, Natixis raised its year-end gold price target to $5,000 per ounce from $4,600 per ounce amid concerns over US debt and the bond market.

Additionally, investors are closely watching Fed Chair Kevin Warsh's speech at Jackson Hole on Friday to gauge the future direction of interest rate policy, leading to a cautious approach when entering gold positions.