Gold Rally Faces Sustainability Test as Second Weekly Decline Raises Concerns - indexbox.io

AI desk brief

Gold’s rally is showing signs of fatigue after a second straight weekly decline, with price sliding to 4,329 midweek before rebounding to 4,477 for a weekly loss of 0.6% (27 points). Mark Mead Baillie says the prior support band at 4,509-4,366 was overshot, while near-term resistance sits at 4,650-4,694; gold remains 119 points above its BEGOS valuation line at 4,358, so a break below that level would argue for further downside.

Baillie notes gold is still in its 14th weekly parabolic long trend of the decade-to-date, and historically a third consecutive down week has often marked the end of such trends, though he views the last two weeks as potentially a pause rather than a full reversal. Silver remains contained within its structural support zone at 66.98-62.45, with resistance at 68.80-69.95, while the next key macro test is the FOMC statement on 16 September alongside August wholesale and retail inflation prints.