Gold tumbles below $4.150 as US bond yields, oil prices rise
Gold price (XAU/USD) falls to near $4,125 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising US Treasury yields and expectations of further Federal Reserve interest rate hikes sap demand for the non-yielding metal.
Gold prices slipped below $4,150 on Tuesday, amid a rise in US bond yields and oil prices. The precious metal experienced a sharp decline of more than 4%, reaching $4,110, its lowest level since August 5. This drop came as investors shifted away from the non-yielding metal due to higher real and nominal yields. Inflation fears, driven by rising energy prices, further compound the challenges facing gold, as it is often viewed as a hedge against inflation.
Analysts anticipate that key economic indicators, such as the US Personal Consumption Expenditures (PCE) Price Index and US jobs data, will provide further insights into the potential direction of interest rates. If economic reports suggest weaker-than-expected outcomes, this could weaken the US Dollar and support gold prices. Technical analysis suggests that gold faces resistance at $4,190, followed by the 100-day simple moving average at $4,300 and the Bollinger middle band at $4,335. A sustained break above these levels could signal a potential rebound in gold prices.
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