Gold Loses Ground as Bond Market Strengthens
The Federal Reserve's recent decision to raise interest rates has kept gold under pressure. The precious metal has been in a bearish bias, with three consecutive losing sessions and a decline of nearly 2.3%. This is despite expectations that the Fed would remain hawkish, which could support gold prices.
The bond market is seen as a rival to gold, and its strength is weighing on the precious metal. U.S. Treasury yields have continued to move higher after the Fed decision, with the 10-year Treasury yield above 5.0%. This reflects growing preference for fixed-income instruments over gold.
Technical analysis suggests that gold's bearish trend could continue. The RSI is below the neutral level, and the TRIX indicator has developed a downward slope. Key levels to watch include $4,480, near-term barrier at $4,330, and critical support at $4,170.