Commodities
Gold Price Tumbles to Fresh Monthly Lows Amid Surging Yields
Gold prices have been under pressure this week, plummeting to fresh monthly lows after yields surged. Despite a softer-than-expected Core PCE report, XAU/USD bears continued to capitalize on pullbacks.
The bearish trend has been building momentum since the FOMC low was taken out aggressively at the start of the week. On shorter-term charts, this has formed a bear flag formation, with sellers pushing below it and opening the door for a re-test of the $4100 level that served as resistance in July.
The daily chart shows a descending triangle formation that was broken, further highlighting bearish control. The $4k level remains a crucial support zone, with some analysts predicting that if it's taken out, prices could drop to $3500 or even $2790.