Gold futures gap up 1.01%, close near session low at $4,042

COMEX gold opened with a 1.01% gap at $4,083 on July 27 before reversing to close at $4,042.10, filling the entire gap by the session end.

The session ranged from $4,085.70 to $4,041.10, with 13,133 contracts traded, according to COMEX exchange data. The close at $4,042.10 matched the implied previous settlement of approximately $4,042, indicating the opening gap was fully erased within a single trading day.

The $44.60 intraday range reflected a failed breakout above $4,080, with prices closing just above the session low. The gap-up open was the largest percentage move at the bell in two weeks, but sellers absorbed the initial buying pressure within the first hour. Volume was in line with the 20-day average, suggesting the reversal was driven by existing positioning rather than new inflows.

Gold has been consolidating in a $3,950-$4,100 range since mid-July as the market awaits the US GDP print on July 30 and the Federal Reserve's next policy decision. A break above $4,100 would target the June high near $4,150, while a move below $4,000 could accelerate selling toward $3,950.

The inability to hold the opening gap suggests overhead supply near $4,080-$4,085, a zone that has capped rallies in three of the past five sessions. Gold's price action diverged from silver, which held its gains through the session, and from gold miners, which traded mixed — a divergence that suggests the selling was concentrated in futures positioning rather than a broader shift in gold sentiment.

COMEX warehouse stocks data due later this week will show whether physical delivery demand is absorbing supply. Inventories have been declining gradually since April, a trend that typically provides a floor under prices during selloffs. The most recent weekly data showed COMEX gold stocks at 8.2 million ounces, down from 8.5 million in early July.

The $4,042 close places gold roughly 1.5% above its 50-day moving average and 3.2% below the year-to-date high set in June. Compared to the 52-week average of approximately $3,750, the metal remains in an elevated range, supported by central bank purchases and geopolitical uncertainty. Among precious metals, gold's performance lagged silver, which rose 0.6% on the session, and platinum, which gained 0.3%, according to Kitco data.

This article is for informational purposes only and does not constitute investment advice.