Gold prices have slipped back under pressure this week but remain stuck in a multi-day trading range following a brief rebound from one-month lows. Heightened geopolitical turmoil has offered modest support, but resilient Treasury yields and dollar strength continue to limit meaningful upside.
Most analysts view the precious metal as vulnerable but await a catalyst-driven break below range support before anticipating a continuation of the extended decline.
Gold currently trades around $2,032, bouncing slightly from a test of range lows but still capped below the $2,040 resistance barrier. Prices have effectively trended sideways for the last week since last Wednesday’s surge to nearly $2,060 was swiftly rejected.
Also read: Gold Price Drops Below $2050, How Will Price Perform In 2024?
Gold needs to reclaim above $2,060 for a strong run
The muted price action reflects uncertainty over gold’s near-term fate, heading into several key central bank announcements this week. On Thursday, traders looked to the European Central Bank for hints at whether ultra-loose monetary policies may soon tighten.
More impactful for gold will be the upcoming Q4 U.S. GDP and inflation data, which are expected to influence rate-cut expectations. Positioning ahead of next week’s pivotal Federal Reserve decision also leaves gold consolidative for now.
From a technical perspective, failure to close above $2,040 resistance keeps risks skewed to the downside in the eyes of analysts. A break below the $2,015 swing low opens the path to retest the July 2022 troughs around $1,960.
Only a push back above $2,060 resistance would delay thoughts of a bearish breakdown targeting those lower levels. Until then, rangebound chop near the bottom of gold’s multi-week trading zone likely persists in the coming days.