Gold Retracts from Three-Month High of $4,696 Following Profit-Taking Near $4,700

Spot gold retreated from a three-month high of $4,696.59 per ounce, recorded in the previous session, following a wave of intense profit-taking near the psychological barrier of $4,700.

The $4,700 per ounce level represents a major psychological resistance where gold has repeatedly stalled, as traders rush to sell whenever the price approaches this limit, hindering a close above it.

The decline comes as investors await the US PCE inflation index data and the Federal Reserve Chair's speech at the Jackson Hole forum, which could reshape market trends in the coming days.

Analysts are monitoring the support level in the $4,550–$4,580 range as the true test of how deep any potential correction might be, while a sustained close above $4,700 points to a significant psychological breakout that could open the way toward higher levels.

What do these terms mean?

Psychological Resistance: Round price levels such as $4,700 where sell orders concentrate because traders assign special importance to them, making a breakout harder.

Profit-Taking: Selling assets after price increases to lock in gains, a natural market behavior that generates temporary selling pressure but does not reflect a change in the overall trend.

Support Level: The price below which a financial asset struggles to fall due to a concentration of buyers, serving as the exact opposite of a resistance level.