Gold rebounded on Thursday, reversing a post‑US CPI decline and dimming the near‑term risk of a sustained break below the critical $4,120 support level.
The metal declined after September’s higher‑than‑expected US inflation sparked bets on a more hawkish Federal Reserve stance. However, remarks from Fed officials indicating a continuation of tightening without urgency for an October rate move soured sentiment.
Another abortive drop hints that larger bears are still active but need further confirmation before launching a decisive push through the $4,120 level, which would herald a bearish continuation and bring the $4,000 support into view.
The daily‑chart technical outlook remains largely unchanged, with momentum indicators still in negative territory but edging higher, supporting a near‑term sideways bias, while moving averages stay in a bearish configuration.
In the near term, price action is likely to stay bearish as long as the market remains on the lower side of the $4,070–$4,230 range, keeping the $4,120 support vulnerable.
Investors are now eyeing today’s US Producer Price Index release for further cues; a hotter‑than‑expected print would likely increase pressure on the yellow metal.
Res: 4170; 4201; 4230; 4245
Sup: 4100; 4066; 4033; 4000
