#XAUUSD Monday (September 21), spot gold traded sideways within a range before falling. It briefly broke below the key support level of $4,335 and touched an intraday low of around $4,322 per ounce. It ultimately closed at $4,343.70, down 0.78%. Gold futures also weakened, closing down by nearly 0.9%. The U.S. dollar index extended its upward trend, driven by expectations that the Federal Reserve will further tighten monetary policy, becoming the main force weighing on gold prices. At the same time, geopolitical tensions in the Middle East continued to escalate. The interaction between energy price volatility and inflation expectations has significantly reduced gold’s appeal as a traditional safe-haven and anti-inflation asset in a high-interest-rate environment.
On Tuesday (September 22), in the early Asian session, worries about inflation triggered by falling oil prices eased, supporting a rebound in gold prices to around $4,365. This gave long positions what appears to be a brief respite. However, whether this rebound is merely a technical correction or the prelude to a trend reversal still needs to be assessed in light of deeper policy and macroeconomic factors.
On Tuesday (September 22), in the early Asian session, worries about inflation triggered by falling oil prices eased, supporting a rebound in gold prices to around $4,365. This gave long positions what appears to be a brief respite. However, whether this rebound is merely a technical correction or the prelude to a trend reversal still needs to be assessed in light of deeper policy and macroeconomic factors.