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Two critical data points expected for gold: Which levels should be monitored for gram gold?

Following the sharp decline in gold at the start of the week, PCE inflation and non-farm payroll data will be decisive for pricing.

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The sharp pullback seen in gold prices on the first trading day of the week has shifted the investor agenda back to support levels and upcoming macro data from the US. Closing at $4,284 on Friday, ounce gold fell to as low as $4,115 in yesterday's trading. Today, with limited bargain hunting observed, ounce gold was priced at $4,140 as of 11:00 AM Turkish time.

The market is focused on the PCE inflation to be announced in the US and the non-farm payroll report due on Friday. It is assessed that if these two data points exceed expectations, the probability of an interest rate hike could strengthen, which may continue to exert pressure on ounce gold.

In an analysis by Ahlatçı Yatırım, it was stated that uncertainties in the Middle East, the rise in oil prices, high bond yields, and a strong dollar have increased selling pressure on the precious metal. The analysis noted that US President Donald Trump's rejection of the deal proposal offered by Iran has weakened expectations for the normalization of flow in the Strait of Hormuz.

Eyes in the gold market have turned to inflation and employment data coming from the US.

SUPPORT AND RESISTANCE LEVELS STAND OUT

Rota Portföy Deputy General Manager Kerem Aksoy predicted that the $4,000-$4,200 band could be a strong support and buffer zone for ounce gold. In this assessment, Aksoy pointed to purchases by the Central Bank of China and ETF inflows from individual investors.

According to Aksoy, if a potential deal in the Middle East occurs, oil prices pull back to the $70-$80 band, and a decline is seen in US bond yields, the $4,700-$4,800 scenario for ounce gold could return to the agenda.

As for gram gold, a recovery was seen after the 6,463 TL level was tested during yesterday's decline. While it is stated that prices are trying to stabilize just above 6,500 TL today, strategist Selçuk Gönençler shared the view that a move above the 6,600-6,650 TL range is necessary for technical relief.