Gold Prices Plummet Below 200-Day Average Amid Yields and Dollar Strength

Gold prices continued to fall on Wednesday, dropping below its 200-day moving average as yields defeated safe-haven demand. The spot price of gold XAU/USD fell by 0.7% to slide under $4,300, its lowest level in over three weeks.

The selloff accelerated after gold broke below the 200-day moving average near $4,530, encouraging systematic and technical sellers to join an already uncomfortable retreat. Immediate support sits around the psychological $4,300 level, followed by $4,250 and $4,200.

Normally, geopolitical escalation supports gold, but this conflict is reaching bullion through inflation and interest rates first. The US ten-year Treasury yield rose above 4.81%, its highest since November 2023, increasing the opportunity cost of holding gold instead of an income-producing asset.