GOLD - Pre-break consolidation around 4500

May 19

XAUUSD is under pressure from a bearish trend on both the local and global scales. The strong dollar is attracting capital. The market is digesting the latest developments surrounding the U.S.-Iran conflict

The market did not buy into the “TACO” narrative, remaining cautious. Geopolitics is at an impasse, which is also putting pressure on gold through high oil prices.
The inflation shock on May 12–13 (CPI 3.7% y/y, PPI 6.0% y/y) has completely ruled out expectations of rate cuts in 2026, triggering a flight to safe-haven assets (the dollar).
Gold’s next move depends on developments in the Middle East. If stagflation risks return to the forefront, U.S. bond yields may resume their rise, putting further pressure on the non-yielding yellow metal

Resistance levels: 4588, 4607, 4646
Support levels: 4510, 4479, 4400

Globally, the focus is on the key support level at 4510. A break below this level could trigger a further decline toward 4400. However, locally, gold is consolidating between 4510 and 4588 and may remain within these boundaries for some time, testing resistance before falling.

Best Regards, R. Linda!

May 19

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