Gold Nears $4,450: What Could Drive the Next Move?

Gold briefly climbed to around $4,450, its highest level since early June, before giving back part of the gains on Thursday.

The pullback comes as traders reassess the impact of July’s softer U.S. CPI. While inflation data reduced expectations for a September Fed rate hike, higher energy prices could keep inflation risks alive.

The next major catalyst is the U.S. PPI report, which could provide another signal on the inflation outlook. A softer reading may support gold by keeping pressure on yields and the dollar.

From a technical perspective, gold remains relatively strong above the $4,400 area. The $4,450 zone is the first major resistance, with a sustained break potentially opening the way toward the $4,500 area.

On the downside, $4,400 is the first level to watch, followed by the 100-day SMA near $4,388.

For traders, the setup remains sensitive to U.S. inflation, oil prices and Fed expectations. A stronger dollar or hotter inflation data could trigger further profit-taking, while softer data may bring buyers back into gold.