On Monday, our analysis noted that the robust U.S. non-farm payrolls report, coupled with hawkish remarks from Federal Reserve officials, had heightened expectations for a September rate hike, exerting downward pressure on gold. However, with the market awaiting the release of U.S. CPI and PPI data, traders remained cautious about taking early positions, which limited the downside potential for bullion. Consequently, we advised monitoring support at $4,365, followed by $4,335, while resistance was seen at $4,430 and then $4,470.

During the European trading session on Tuesday, gold fluctuated sideways around the $4,400 handle. As U.S. markets opened, the metal came under selling pressure, slipping to a fresh daily low of $4,345 before the close. On Wednesday, bullion initially extended its decline, bottoming out at $4,341 before staging a rebound. It climbed to a daily high of $4,412 in the European session and is currently trading near $4,390. Overall, gold's movement has been relatively subdued, maintaining a range-bound pattern as both buyers and sellers exhibit caution.

A senior analyst at Wolfinance observed that last Friday's strong jobs report stirred rate hike speculation, dragging gold lower for three consecutive sessions. However, given that the market is still awaiting CPI and PPI figures—— and inflation remains the core policy driver—— early positioning is restrained, keeping the pullback modest. Additionally, wage growth in August slowed to its weakest pace in nearly five years, and the probability of a September hike rose only marginally. A single employment report is unlikely to cement such expectations. The U.S. dollar's rally following the data quickly faded, and it has faced continuous pressure this week, reflecting waning confidence in the currency and providing a foundation for gold's intraday recovery. Looking ahead, the focus will be on the upcoming CPI and PPI releases, as they are set to directly influence Fed decisions and, in turn, gold prices.

On the daily chart, gold remains range-bound after encountering resistance during its rebound. Immediate support is seen near the day's low of $4,340, which also aligns with Tuesday's bottom and the middle Bollinger Band, followed by the psychological $4,300 level. On the upside, resistance is located at the daily peak of $4,412, coinciding with the 5-day moving average, with further hurdles at the weekly 5-day average of $4,452 and the $4,500 mark. Technical indicators show a bearish tilt—— the 5-day moving average has formed a death cross with a slight upward tick, the MACD histogram is declining, while KDJ and RSI are turning higher from oversold conditions—— suggesting that while sellers hold a slight edge, a corrective bounce is possible.

For the session ahead, gold is likely to stay in a consolidation phase. The strong payroll report was undermined by sluggish wage growth, and with inflation data still pending, early bets remain thin. Our strategy is to treat the market as range-bound: watch for support at $4,340 and $4,300, while resistance is marked at $4,412 and $4,452, with $4,500 as a secondary target.