Gold Breaks Below Key Support

XAUUSD is weakening significantly after failing to hold above the 4,680 – 4,670 USD support zone. On the H4 chart, price has already broken below both EMA34 and EMA89, while strong bearish momentum pushed gold down near 4,610 USD.

If sellers continue controlling the market below the broken support, gold could extend losses toward 4,550 USD and potentially 4,500 USD in the short term.

The main bearish catalyst remains strong US inflation data. CPI rose to 3.8%, while PPI posted its largest increase since 2022 due to higher energy prices linked to Iran tensions.

This has almost eliminated expectations for Fed rate cuts this year, supporting the US dollar and Treasury yields — both negative factors for gold.

Despite current weakness, analysts like Fawad Razaqzada still believe long-term inflation risks and geopolitical uncertainty remain supportive for gold as a safe-haven asset.