Gold Fails to Break Above $4,400 Amid Rising Treasury Yields
Gold prices hovered below $4,400 per ounce on Monday after reaching a high of $4,399.75 on Friday. Profit-taking and a stronger dollar pushed gold prices lower, keeping bullion just below the psychological level. The metal remains well above the $4,235 area reached earlier in the month, indicating that the broader recovery is still intact.
However, elevated Treasury yields continue to complicate the recovery of gold prices. The Federal Reserve raised interest rates by 25 basis points last week to 3.75%-4.00%, and 16 out of 18 policymakers projected at least one more increase in 2026. U.S. 10-year Treasury yields have also remained around the 5% area, making it challenging for gold prices to break higher.
Oil prices fell on Monday, with Brent crude dropping to about $101.20. This decrease in oil prices offered some support to gold by easing inflation concerns. The next test for gold comes down to whether buyers can absorb supply at $4,400 while yields remain elevated.