Spot gold maintained its elevated sideways trading pattern during Thursday’s Asian morning session on August 27, with prices easing back to around $4,610 per ounce after retreating from a three-month peak. The pullback follows a rapid rally that had built up substantial gains, with the current correction driven by both fresh U.S. inflation data and a degree of profit-taking among long positions. The central question occupying the market is whether U.S. inflation pressures will be enough to force the Federal Reserve to re-tighten its monetary policy stance, and whether the higher-for-longer interest rate environment can genuinely alter gold’s recent bullish structure.
Overnight, bullion declined sharply as U.S. inflation data came in stronger than expected, with the low printing at $4,584. In yesterday’s analysis, I flagged the risk of a bearish evening star pattern forming, and the sizeable bearish candle that followed fell squarely within that anticipated scenario. Today, August 27, the market gapped higher at the open, yet even with a brief surge in volume, prices failed to reclaim the $4,650 pivot level. The subsequent downward drift is now confirmed by the hourly chart, where the MA20 and MA60 moving averages have completed a bearish crossover, signaling that the downside move has further room to run. Should $4,580 hold as support, gold can still consolidate in its elevated range and make another attempt at $4,650. A break below that level, however, would reinforce the evening star pattern and could extend the near-term correction toward $4,550 and potentially $4,520.
Key levels to watch:
Resistance: $4,650, $4,670
Support: $4,550, $4,520
Long-term strategy: Buy on dips to $4,567/4,555 in batches; sell on rebounds to $4,615/4,625 in batches, targeting 20/50 points. Note: The GOLD pivot stands at $4,611 per ounce. These views are purely personal and do not constitute investment advice.
International oil prices came under pressure during Thursday’s Asian trading hours, with WTI crude sliding back into weakness after a modest rebound in the previous session, trading around $81.80 per barrel. The market’s core pricing driver remains the pace at which shipping through the Strait of Hormuz can be restored. Iran and Oman have recently engaged in intensive discussions over navigational arrangements in the strait, making progress on certain maritime rights and related revenue distribution, which has eased investor concerns about a prolonged disruption to crude supply.
On Thursday, August 27, U.S. crude was trading near $81.14 per barrel, down 1.33%. The latest decline in intraday trading reflects a short-term bearish bias, with price action holding below the EMA50, which continues to exert negative pressure as dynamic resistance and reduces the likelihood of a swift full recovery in the near term. The bearish pressure surrounding prices is intensifying, and after unloading overbought conditions, the Relative Strength Index has begun to show a negative crossover, leaving room for continued downside pressure in the short term.
Key levels to watch:
Resistance: $81.5, $83.5
Support: $80.0, $78.2
Short-term strategy: Buy on dips to $78.2 ± 0.2; sell on rebounds to $81.5 ± 0.2, targeting 2.0/3.0 points per barrel. This content is for reference only and does not constitute investment advice. Investors should bear the risks of acting on it accordingly.
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