Gold Price Takes Hit as Yields Surge, Eyes NFP Breakout

The gold price has been under pressure this week, with yields surging and Treasury rates rising. Despite a softer-than-expected Core PCE report, XAU/USD bears have continued to push back against rallies.

As a result, the focus is shifting towards the upcoming NFP on Friday, which could provide a catalyst for gold prices to break below $4100. If this happens, it would set up a re-test of the hardened support from June and July at the $4k level.

The short-term chart shows a bear flag formation that was broken on Monday, opening the door for a re-test of the lows followed by the $4100 level. The daily chart also shows a descending triangle formation that was taken out, highlighting bearish control and increasing the likelihood of another sell-off.

While the fundamental backdrop remains unfavorable for gold, with surging Treasury yields and hawkish expectations around the FOMC, the support hold at the $4k level has been crucial in coalescing both short-term and long-term views. If this level is broken, it could set up a potential move to $3500 or even $2790.