Prices experienced a short-term rebound after reaching oversold conditions. Today, as long as it holds above $4,415, further rebound remains likely. However, if the rebound fails to pass $4,564, caution is advised as it may be a temporary bounce before another consolidation leg down. Resistance levels are at $4,463–$4,482, while support levels lie at $4,415–$4,395 and $4,325.

Investment strategy: Take profit on yesterday's long positions if prices fail to pass $4,463–$4,482; if passed above $4,482, delay selling until the next resistance level.

Open long positions if the price pullback holds above $4,415–$4,395 (Stop loss if price breaks below $4,395 to move the buying entry to the next support level).

Key Factors

Yesterday, gold closed down $9.90, dipping near a two-week low as market expectations for a September Fed rate hike rose following hawkish remarks from Fed Chair Kevin Warsh.

Additional pressure came from a more than 2% surge in crude oil prices after the U.S. struck an Iranian island near the Strait of Hormuz and Iran retaliated, heightening global inflation concerns.

However, gold recovered from its session lows as the Japanese yen strengthened, weighing on the U.S. dollar. This followed comments from Scott Bessent, who noted expectations for Japan and the Bank of Japan (BOJ) to take measures supporting the yen, while signaling a potential BOJ rate hike at its September meeting.