XAU/USD drops near $4,550 amid USD strength and hawkish Fed expectations following robust US economic data.
Gold prices fell for a fourth consecutive session, trading near $4,553.16 as the US Dollar strengthened. The Greenback gained support from rising expectations of a hawkish Federal Reserve after stronger-than-expected US inflation and Retail Sales data reduced bets for imminent rate cuts.
Technical indicators show XAU/USD holding below key moving averages, including the 100-period SMA at $4,655.41 and the 200-period SMA at $4,699.41. The Relative Strength Index slipped into oversold territory at 27, suggesting potential profit-taking by sellers. Resistance levels are seen at $4,655.41 and $4,751, while support lies at $4,479 and $4,351.
Geopolitical tensions, including US-Iran frictions near the Strait of Hormuz, kept oil prices elevated but failed to support gold, which often acts as a safe-haven asset during uncertainty.