On Monday (September 21), spot gold traded in a range before falling, briefly breaking below the key support level of 4,335 and hitting 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 nearly 0.9%. The U.S. Dollar Index continued its upward trend, driven by expectations of further monetary tightening by the Federal Reserve, becoming the primary force weighing on gold prices. Meanwhile, geopolitical tensions in the Middle East continued to escalate, and the interplay between energy price volatility and inflation expectations significantly eroded gold’s appeal as a traditional safe-haven and anti-inflation asset in a high-interest-rate environment.
In early Asian trading on Tuesday (September 22), easing inflation concerns stemming from falling oil prices drove gold prices to rebound to around $4,365, giving bulls what appeared to be a brief respite. However, whether this rebound represents a technical correction or the prelude to a trend reversal still requires examination in light of deeper policy and macroeconomic factors.
$XAU/USD(XAUUSD.FOREX)$$Gold - main 2612(GCmain)$
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