Gold Could Test $4,000 Support This Week as Inflation Pressures Mount

According to Fawad Razaqzada, Market Analyst at FOREX.com, gold prices could test major support at $4,000 this week after Friday's breakdown below the 200-day moving average. Razaqzada noted that the next technical support level sits around $4,230, with further support near the March lows around $4,100. The last time gold fell below its 200-day moving average in September 2023, prices subsequently declined 5%.

Markets are preparing for Wednesday's Consumer Price Index report, with core inflation expected to rise 2.9% over the last 12 months. According to Razaqzada, a stronger inflation reading could support expectations for elevated interest rates and a stronger U.S. dollar, potentially weighing further on precious metals.