HG MARKETS: 

Gold (XAU/USD) is recovering from recent losses, with prices returning toward the $4,400 level during Wednesday’s European session after falling to a low of around $4,345 on Tuesday. The rebound is being supported by broad-based weakness in the US Dollar, which has provided some relief to the precious metal. However, despite the short-term recovery, Gold remains under pressure after losing more than $100 over the previous three trading sessions.

The US Dollar remains on the defensive as investors await the latest US inflation data, which could provide fresh clues about the Federal Reserve’s interest-rate outlook. A stronger-than-expected Consumer Price Index (CPI) reading could reinforce expectations of a September rate hike and support the USD, potentially limiting Gold’s recovery. Conversely, softer inflation data could weaken the Dollar and improve the outlook for non-yielding assets such as Gold.

From a technical perspective, the broader bearish structure remains intact. XAU/USD is still trading below its 200-day Simple Moving Average (SMA), while recent price action suggests that the recovery may represent a temporary rebound rather than a trend reversal. The daily Relative Strength Index (RSI) is hovering around the neutral 50 level, while the Moving Average Convergence Divergence (MACD) remains in negative territory, indicating that bearish momentum has not yet been fully reversed.

The key downside area to watch is the $4,300–$4,280 zone, which acts as an important support and neckline region for a potential bearish Head-and-Shoulders (H&S) pattern. A decisive break and daily close below this zone could confirm the formation and expose the August 6 low near $4,223 as the next potential downside target. Until this support is broken, however, Gold may continue to experience volatile two-way trading.

On the upside, XAU/USD faces immediate resistance around $4,400, followed by Tuesday’s high near $4,443. A sustained move above this level could open the way toward the $4,500 region, with the 200-day SMA near $4,537 representing a major technical barrier. Overall, while Gold has regained some ground from its recent lows, the broader technical bias remains bearish unless buyers can push prices decisively above these key resistance levels.