Gold Extends Gains Toward $4,100 as Inflation Concerns Ease

Gold is pushing back toward the $4,100 level after last week’s volatile session produced long upper and lower shadows on daily charts, leaving prices stuck in a short-term sideways range.

While safe-haven demand driven by AI sector turbulence supported bullion last week, its trajectory remains more tightly correlated with the U.S. dollar’s performance than broader risk sentiment.

A decline in oil prices has alleviated inflation worries ahead of this week’s U.S. October CPI release, damping expectations for further Federal Reserve tightening and weighing on the dollar at the start of the week.

Improving daily technical indicators—including a break above the 10- and 20-day moving averages and rising 14-day momentum—favor the upside, though a close above $4,100 is needed to sustain the bullish tone, and a break above Thursday’s high at $4,146 would confirm continuation.

Upside targets include $4,186 (38.2% Fibonacci retracement of the $4,697/$3,870 decline), the 100-day moving average at $4,200, and $4,217/$4,223 (the October 12 lower high and 55-day DMA), a break of which would signal a trend reversal.

The broken $4,100 level now serves as immediate support, followed by the 23.6% Fibonacci level at $4,065, which has withstood multiple tests. The rising 10-day DMA at $4,023 marks the next critical floor; a break below would signal the end of the corrective rebound from the October 30 low at $3,870.

Res: 4146; 4186; 4200; 4217
Sup: 4100; 4065; 4023; 4000

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