Gold futures ease back from the three-month highs reached early this week after PCE inflation, a consumer price gauge favored by the Fed, picked up in July. The report was closely watched given its implications for Fed policy. “
The metal could continue to benefit from concerns over U.S. debt levels as well as expectations of a Fed hold at its next meeting,” Critical Metals CEO Tony Sage said in a note. “
However, a hike is still expected at the following meeting, which could fuel some pressure.” Front-month gold futures finished down 0.86% at $4,598.20 an ounce, while silver fell 0.94% to $67.99. The gold price is now at $4,591.44.
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Iran Sanctions Put Gold Back on the Geopolitical Radar
The U.S. has expanded its Iran sanctions campaign beyond oil, targeting digital assets, gold, technology, aviation and shipping under Operation Economic Outcast. The Treasury Department says the measures are designed to cut off financial channels used by Tehran to generate revenue and bypass existing restrictions. Nearly 60 Iran-linked individuals, companies and vessels have been targeted.
Gold matters here because Treasury specifically identifies it as a channel Iran can use to preserve value outside conventional financial systems. Washington says Iran has increasingly used gold to help stabilize its currency amid very high inflation. That makes gold part of the financial infrastructure being targeted, not merely a commodity caught in the sanctions campaign.
For the gold price, the bigger market question is the geopolitical risk created by the campaign. Shipping is also under pressure, and the Strait of Hormuz remains a major source of uncertainty for global energy markets. Reuters reports that the U.S. campaign is aimed at Iran’s shadow-banking networks, with enforcement also extending to international companies and intermediaries that facilitate Iranian trade.
Related Gold News: Here’s How High Gold Price Could Go This Week
Can Unemployment Claims Move the Gold Price?
U.S. initial jobless claims are due at 1:30 p.m. on August 27, with economists expecting 208,000 claims versus 206,000 in the previous week.
For gold, the key is what the number does to expectations for Federal Reserve policy and the U.S. dollar. A reading above 208,000 could point to softer labor-market conditions.
That may increase expectations for easier Fed policy, potentially helping the gold price because lower-rate expectations reduce the opportunity cost of holding a non-yielding asset. A lower-than-expected number could support the dollar and Treasury yields, creating pressure on gold.
The data matters even more after July PCE inflation came in at 3.7% year over year, above the 3.6% forecast. Markets have priced a 40% probability of a Fed rate increase at the next meeting, according to Reuters.
Where Can Gold Price Go Today, August 26?
We had a look at the gold chart, and the key level for August 27 is the $4,659 daily PD array. The gold price at $4,591.44 is below that level, meaning traders need to watch how price reacts around this zone.
The chart shows gold recovering from the July low near $4,000 before breaking through the $4,200 and $4,400 areas. The latest rally carried the metal toward $4,700, where sellers have appeared. Above the current price, the marked resistance zones are around $4,782 and $4,880.
The setup gives $4,592 as the immediate objective, almost exactly matching the current gold price. If that level is respected and buyers reclaim the $4,659 PD array, the next target is $4,782. A break above that zone could open the way toward $4,880.
The bearish scenario comes if the $4,659 area fails to hold as a key level and price loses the lower support structure. The setup then points toward roughly $4,420.
The Ultimate oscillator is at 60.32, keeping the daily trend bullish without reaching the traditional 70 overbought threshold. For August 27, $4,592 and $4,659 are the levels to watch first, with $4,782 above and $4,420 below providing the main technical targets.
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