Gold Price Tumbles Below $4,100 Amid Higher US Yields
The price of gold (XAU/USD) has pulled back below $4,100 as investors weigh the impact of higher US yields. The metal's recent rally came to an end on Wednesday after hitting a high of $4,185. Rising oil prices have reactivated concerns about inflationary risks, pushing US Treasury yields to fresh highs.
Analysts at TD Securities see the recent gold recovery as a corrective reaction that is likely to be short-lived. They note that there are no fundamental reasons to believe that the US rate and FX environment will be conducive to increasing long gold exposure anytime soon. In their view, the Middle East war-driven oil price increases will continue to increase the probability of a Fed rate hike, limiting the scope for a more durable upside extension for gold.
Technical indicators show bearish signals, with momentum indicators suggesting that bulls have given up and sellers are taking back control. Immediate support is seen at the reverse trendline around $4,005, followed by the year-to-date lows at the $3,940 area. Further down, the late October 2025 low just below $3,900 emerges as the next target.