Gold futures have slipped into a short-term correction within a broader bullish trend, trading near $4,638 after retreating from a $4,755 high. Technical models point to the $4,577-$4,583 zone as the key support cluster to hold, while firm Treasury yields and elevated inflation complicate the near-term picture.
Gold pulls back from its recent high
Gold futures are consolidating after pulling back from a $4,755 high to trade near $4,638 on the 15-minute chart, according to VC PMI technical analysis. The pullback has pushed price into a test of the first key support level.
The daily VC PMI mean sits at $4,659, and a break below it would shift short-term momentum toward the daily Buy 1 level at $4,621. If selling continues through that point, Buy 2 at $4,577 becomes the next objective. The weekly VC PMI mean, at $4,589, converges closely with that daily Buy 2 level, making the $4,577-$4,583 area a major technical support cluster.
A successful hold there could open the way toward $4,653, then daily Sell 1 at $4,703 and Sell 2 at $4,741, with weekly objectives further out at $4,788 and $4,895. A sustained break below $4,577, however, would weaken the bullish structure and expose weekly Buy 1 at $4,476.
Cycle window adds to the significance of the test
The market is approaching an August 27-September 3 cycle window, a period the analysis flags as important for confirming whether the pullback is a cyclical low rather than a trend reversal. From a Square of 9 perspective, the recent $4,755 swing high serves as a vibration anchor, with rotational relationships around the $4,700, $4,650, $4,600 and $4,575 levels reinforcing the current VC PMI zones. Price and time confirmation are still needed before the correction can be considered complete.
Mixed fundamentals surround the pullback
U.S. initial jobless claims fell to 203,000, a signal of labor-market stability, while inflation remains elevated, giving the Federal Reserve room to hold a restrictive stance. Treasury yields firmed on Thursday ahead of Fed Chair Kevin Warsh's Jackson Hole remarks.
At the same time, the Treasury's expanded long-duration bond buybacks have fed dollar-debasement concerns, and gold-backed ETFs recently recorded their largest weekly inflow in ten months, a factor the analysis says continues to support the medium-term case for gold.
Buying corrections remains the preferred approach
The preferred strategy is buying corrections rather than shorting into a broader bullish market. Traders are watching $4,621 first, then the $4,577-$4,583 convergence zone; a recovery above $4,653 would improve the short-term outlook and reopen the path toward $4,703-$4,741.
Source: Investing.com
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