Gold Prices at Critical Threshold: Can It Break $4,400?

Gold prices started the new week with a strong buying wave, reaching a critical threshold.The weak macroeconomic data from the US economy and the strong corporate demand returning to stock exchange-traded funds (ETFs) pushed the price of gold to the $4,395 band in the Asian session. In the domestic market, both the rise in gold prices and the impact of the exchange rate have maintained the strong stance of gram gold above the 6,700 lira level.The 0.6% decline in US retail sales in July and the annual inflation rate remaining at 3.4%, without surprise, eased the pressure on the Federal Reserve (Fed) to raise interest rates. The probability of the Fed raising interest rates in September fell to 33.1%. This reduction in interest rate expectations made gold, which has no yield, attractive to investors again.On the other hand, the net inflow of $3 billion into global physical gold ETF funds in July indicates that the rise is supported by a broad-based corporate demand. In terms of technical analysis, analysts state that if the psychological threshold of $4,400 is exceeded, the first strong sales area will be the $4,480 resistance level.