Gold regains traction on easing inflation concerns

Gold regained traction and probes again through $4100 barrier, following last week’s strong rejections on both sides (daily candles with long upper shadow on Thursday and with long tail on Friday) that kept the price in near-term sideways mode.

Gold gained last week on risk aversion over turbulence in AI sector, but its fate remains closely connected to performance of US dollar rather than risk sentiment.

Recent drop in oil prices have eased inflation fears (markets await release of US Oct inflation report later this week) that affected expectations for further Fed tightening and deflated the greenback at the start of the week.

Improving daily studies (recent break above 10 and 20DMAs / north-heading 14-momentum is pressuring the centreline) keep near-term focus shifted to the upside, although with close above $4100 needed to maintain positive tone and list above Thursday’s spike high ($4146) to signal bullish continuation.

Next targets lay at $4186 (Fibo 38.2% of $4697/$3870 descend); 100DMA ($4200) and $4117/23 (Oct 12 lower top / 55DMA), break of to generate reversal signal.

Broken $4100 acts as immediate support, followed by broken Fibo 23.6% ($4065) which have contained several attacks and should keep the downside protected and rising 10DMA ($4023) loss of which would signal an end of corrective phase from $3870 low (Oct 30).

Res: 4146; 4186; 4200; 4217
Sup: 4100; 4065; 4023; 4000