Gold Price Slumps Amid Rising Yields and Hawkish Fed

The gold price has been falling in recent days due to rising interest rate expectations, higher oil prices, and a strengthening US dollar. As interest rates rise, investors are increasingly likely to opt for assets that earn returns, such as bonds, making it more difficult for gold to thrive.

Rising bond yields have led to increased bets of policy tightening by the Fed, further weighing on gold's prospects. The greenback has been supported by hawkish Fed commentary and forecast-beating US macro data, pushing gold and silver prices lower.

The technical analysis suggests that gold is likely to continue its decline, with a possible target of $4,100 initially, ahead of $4,000 next. However, if investors lose faith in the Fed's ability to control inflation or yields, the dollar debasement trade could resurface and boost gold prices.