Gold Price Plunges as Treasury Yields Surge, Bears Eye Key Support Level

Gold prices took a hit at the start of the week as Treasury yields surged, and despite a softer-than-expected Core PCE report, bears continued to push gold lower.

The price drop on Monday came after gold had previously held up well against rising Treasury yields. The metal was able to hold above the FOMC low last week but was aggressively taken out at the start of this week.

On a shorter-term basis, this created a bear flag formation, and sellers pushed below it, opening the door for a re-test of the lows and the $4100 level that had previously set resistance in July.

The daily chart shows a descending triangle formation that was broken on Monday, further highlighting bearish control. The next spot of support is at the $4k level, which has been crucial in coalescing shorter- and longer-term views.