After a strong rebound from the 4230-4250 area, gold prices are currently approaching $4030/oz, while prices remain below the Ichimoku cloud and within several unclosed price gaps, indicating an attempt to reallocate liquidity before establishing the next trend. The 4000-3980 level is a sensitive support point used by buyers to defend, while the 4070-4100 area has become a difficult obstacle reflecting weak upward momentum.

Fading prospects of a rate cut by the Federal Reserve pushed the dollar higher, adding to pressure on gold as a non-yielding asset. Delays in economic data due to the U.S. government shutdown have made the Fed more cautious, while Powell’s recent comments have reinforced the view that interest rate hikes will be maintained for a longer period of time.

If the price falls towards 3970-3990 and new demand emerges, the price of gold may move towards 4100-4150. If it breaks through this range, the rise may extend towards 4200-4250.

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