Gold Prices Drop Below $4,050 Amid Hawkish Fed Expectations

Gold prices have continued to decline, falling below $4,050 as a stronger US Dollar and higher yields drive demand lower. The rise in US Treasury yields, tied to persistent inflation concerns, has boosted expectations for a more hawkish Federal Reserve stance, reducing the appeal of gold as a non-yielding asset.

The technical signals remain bearish, with a 73% probability of further downside over the next 2-3 trading sessions. The price is expected to remain within a volatility band between $4,013 and $4,094 during this period, with a 27% chance of an upward move.

The Ichimoku Kijun sits at $4,058, marking immediate resistance, while the day's price action remains just beneath this level. Downside momentum is reinforced as both MACD and ADX flag ongoing bearish conditions.