Decline risk in spot gold: Critical levels and supports to watch

The decline in spot gold prices continued in Asian trading, pulling back to $4,120. While high oil prices and the possibility of a new interest rate hike increase selling pressure, analyses highlight the $4,065 support level.

Spot gold retreated to $4,120, remaining below the $4,150 mark. While tensions in the Middle East keep concerns regarding energy supply alive, high oil prices increase anxieties that inflation in the US may persist. This situation pressures gold amid expectations that the Fed might keep interest rates high for a prolonged period. In futures market pricing, the probability of a 25 basis point rate hike by the Fed at the October meeting is seen at 16.1%.

In the technical outlook, the first resistance ahead of a recovery is located at the $4,170 level. In the event that upward movement strengthens, resistances at approximately $4,235—where the 100-day moving average is situated—and $4,275 will be monitored. If selling continues, the $4,065 support corresponding to the lower Bollinger band stands out. If this level is breached, the $4,000 level could come onto the agenda.