Gold Price Imprisoned, Is It True It Cannot Rise to US$ 4,500?

Gold and silver prices fell as investors took profits after prices hit a two-month high. US inflation data that met expectations also dampened hopes for a Federal Reserve interest rate hike next month. Citing Refinitiv, gold trading on Thursday (13/8/2026) closed at US$ 4,350.16, a drop of 1.29%. This decline occurred after gold hit a two-month record on Wednesday. The price recovered slightly today. On Friday (14/8/2026) at 06:50 WIB, the gold price strengthened 0.22% to US$ 4,359.66 per troy ounce. “US$4,500 is a major resistance level for gold. We have touched it twice and the price has plunged from that level,” said Bob Haberkorn, senior market strategist at StoneX. The US Producer Price Index (PPI) for July showed no change month-on-month. This figure was lower than the expectations of economists surveyed by Dow Jones, who had forecast a 0.2% increase. Excluding volatile food and energy prices, core PPI rose 0.2%, slightly below the economist estimate of 0.3%. The lower-than-expected PPI data came a day after the release of the Consumer Price Index (CPI). A decline in goods prices offset an increase in service costs, indicating that inflationary pressures could still persist. Earlier, US inflation data showed annual inflation for July reached 3.4%, down from 3.5% in June and in line with economist expectations. The market now sees a 35% chance of a Fed rate hike in September, down from 40% after the PPI data was released. Lower interest rates typically support gold by reducing the opportunity cost of holding the non-yielding asset. Independent analyst Tai Wong noted that gold had previously surged around 9% in a week, driven by buying from China and retail investors, prompting the current round of profit-taking.