Gold drops below $4,265 as rally stalls at $4,380 resistance

COMEX gold fell below $4,265 an ounce, extending losses after failing to breach the $4,380 resistance level on June 22.

The decline pushed the metal below its 100-period and 200-period simple moving averages on the four-hour chart, with the price also breaking under the 61.8% Fibonacci retracement of the prior rally from $4,023 to $4,382, according to exchange data. The breakdown marks a shift in near-term momentum after gold had staged a recovery from the $4,023 swing low.

Gold had climbed as high as $4,382 in the prior session before reversing sharply. The failure at that level triggered a selloff that accelerated through the $4,320 and $4,265 support levels. The next major support sits at $4,100, followed by $4,050 and the $4,020 zone, exchange data shows. A drop below $4,020 could expose the $3,880 level, with the main support at $3,500. Further losses could test $3,320 and $3,240 in the coming sessions.

On the upside, gold faces immediate resistance at $4,265, with a trend line at $4,350 representing the next major hurdle. A move above $4,350 could reignite the rally toward $4,380 and potentially $4,420. Any further gains above that level might open the path toward $4,650.

The broader commodities complex showed weakness, with WTI crude oil extending its decline and trading below $78 a barrel, with risks of further losses below the $72 zone. The euro weakened against the dollar, with EUR/USD testing the 1.1420 support level, while GBP/USD moved below 1.3300. A stronger US dollar reduces the appeal of dollar-denominated commodities for holders of other currencies.

Traders are watching the upcoming economic data releases for directional cues. The euro zone's preliminary Manufacturing PMI for June is forecast at 51.2, down from 51.6, while Services PMI is expected at 48.1 versus 47.7 prior. In the US, the S&P Global Manufacturing PMI is forecast at 54.7, down from 55.1, with Services PMI expected at 51.0 versus 50.7. Euro zone consumer confidence data is also due, with the preliminary June reading forecast at minus 18, improving from minus 19. Speeches from ECB President Lagarde and Fed Governor Waller are scheduled later this week and could provide further direction for gold prices.

This article is for informational purposes only and does not constitute investment advice.