Gold Price Holds Ground Amid Surging Yields and Hawkish Fed

Gold prices have been struggling lately, but despite the challenging macro backdrop, there are reasons to believe that they can continue to hold their ground.

The Treasury yields have surged, and the Fed's stance has become increasingly hawkish, which is typically bearish for gold. However, history shows that gold often finds support at critical levels, and the $4235 FOMC swing low is no exception.

As James Stanley notes in his analysis, the sellers were unable to break through this level last week, and instead, buyers stepped in to prevent a more significant decline.

While gold's shorter-term prospects are uncertain, the bigger picture remains bullish. As long as reserves continue to flow into assets like gold or Bitcoin, there is still a motive for support.

The recent weakness in gold has been mild, and the metal has not broken down more aggressively over the past two weeks. This could be an indication that buyers are still committed to supporting prices at critical levels.

Stanley references a similar situation in June when Kevin Warsh's hawkish comments sparked a brief weakness in gold, but ultimately led to a breakout in August. The same scenario may play out again if bulls can regain control and push through key resistance levels.