Gold Prices Break $4,300 Support, Focus Shifts to $4,100

Gold prices have fallen below the critical support level of $4,300 ahead of the US consumer inflation data. This decline is attributed to reduced risk appetite as investors await the inflation figures. Markets are looking for clearer signals on the direction of gold prices following the data release. In the Grand Bazaar, Republic gold and quarter gold lost 1.9% in value, mirroring the decline in spot gold. This indicates increased selling pressure in the domestic gold market. Investors are reviewing their short-term positions, closely monitoring the movement in gold's spot price. From a technical analysis perspective, the break below $4,300 signals a potential move toward the next support level at $4,100. If $4,100 is also breached, a deeper correction could occur. However, if inflation data comes in lower than expected, gold prices may have the potential to recover. US inflation data remains a decisive factor for gold prices. High inflation typically boosts demand for gold, while low inflation could support gold by reducing expectations of interest rate hikes. Therefore, investors are closely watching the data release and subsequent market reactions. This is not investment advice.