Gold Rejected at $2,530 Resistance Again

Gold has shown resilience, continuing to return to the resistance zone at all-time highs, but it also keeps failing and earlier today we saw a retest of the resistance ahead of the US CPI inflation report, as traders were leaning against the USD, but core CPI showed that goods inflation continues to remain high, so Gold prices turned lower, falling to $2.500 lows.

Gold prices surged by 1.2% on Wednesday during the Asian trading session, with XAU/USD reaching $2,528.88. This increase came as US Treasury bond yields dipped ahead of the release of the Consumer Price Index (CPI) for August. Traders were keeping a close eye on the upcoming inflation report, which has been a key driver of market sentiment and it turned the Gold sentiment negative.

Gold has been showing consistent strength, forming solid support zones at $2,470 and $2,500, where buyers have repeatedly stepped in, pushing prices higher. Despite this upward momentum, sellers continue to hold the line around the $2,530 mark, preventing a decisive breakout.

Gold Chart H4 – The Resistance Zone Continues to Hold

This ongoing battle between buyers and sellers is intensified by global geopolitical and economic tensions, leading to fluctuations within a tight range. The repeated failure to break through resistance at $2,530 indicates strong selling pressure, but the steady appearance of buyers at key support levels signals that demand for gold remains robust. Over the past three weeks, bullish sentiment has been building, but the market has yet to see a significant technical breakout.

Gold’s upward trend in 2024 has remained intact, with no major corrections despite several attempts by sellers to push the price lower. The fact that today’s pullback stopped once again at the $2,500 support level suggests that gold could be gearing up for another push higher. If the price can break through the $2,530 resistance zone, it could pave the way for a renewed rally, potentially taking gold closer to new record highs in the coming sessions.

Gold Live Chart