Gold retreated from its record high near $4,700 per ounce as traders positioned ahead of the US PCE inflation report, a key input for Federal Reserve policy.
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Gold eases from $4,700 high ahead of US PCE data
COMEX gold eased from its record high near $4,700 per ounce on Aug. 26, trading around $4,650, as investors awaited the US personal consumption expenditures report due later in the session.
"The pullback is a technical correction within a broader uptrend, not a reversal of the bullish thesis," United Overseas Bank said, flagging near-term resistance after the metal's overbought rally.
Spot gold touched an intraday high of $4,698 before retreating, with immediate support seen at $4,600 and deeper support near $4,500, according to Bitcoin World analysis. The retreat also follows easing tensions in the Strait of Hormuz, which cooled safe-haven demand after a geopolitical-driven rally.
The PCE report, the Fed's preferred inflation gauge, is expected to show core prices rising 3.3 percent year-over-year in July, flat from June, with a 0.2 percent monthly gain, according to TradingKey. A cooler reading could push gold back toward $4,700 and test $4,800, while a hotter print may drive the metal toward $4,600 or lower to $4,530.
Central bank buying keeps a floor under prices
Central bank purchases and renewed ETF inflows continue to support prices, with the official sector diversifying reserves away from the US dollar. The combination of institutional buying and retail interest suggests any significant downside will be met with demand, keeping the broader uptrend intact.
Holding above $4,600 keeps the uptrend intact, with sustained gains above $4,700 confirming the next leg toward the $5,000 psychological level in the medium term, according to Bitcoin World. Gold at $4,650 sits about 1 percent below its record high of $4,700 and roughly 7 percent below the $5,000 medium-term target.
PCE release sets the next direction
The PCE release is the next directional signal, with the Fed's policy meeting later this month also in focus. A clear signal on the timing of rate cuts could provide the next leg higher, while any escalation in Middle East tensions could quickly reignite safe-haven flows.
This article is for informational purposes only and does not constitute investment advice.
[1] Gold eases from $4,700 high ahead of key US PCE inflation data[2] Gold Pulls Back After Testing $4,700, but Bullish Momentum Holds[3] Gold Pulls Back From $4,700 as Hormuz Hopes Cool Haven Demand[4] US July PCE Data Preview: Core Inflation May Hold at 3.3%, How ...[5] Gold Steadies Near $4,650 As Traders Await US PCE Data For Fed Rate Cues
