Gold Prices Plummet to Multi-Week Low Amid USD Strength and Rising Treasury Yields

Gold prices have fallen to a multi-week low of $4282, testing the strength of sellers in the market. The dollar index remains firm at 99.85, while the 10-year US Treasury bond yields have skyrocketed to 4.82%, creating headwinds for gold.

The recent decline has led to oversold conditions in shorter time frames, with prices bouncing back slightly to test $4379. However, the overall market structure remains bearish, with gold breaking below its 100-day Simple Moving Average and forming lower highs and lows.

Renewed US-Iran tensions have pushed oil prices higher, reviving inflation concerns and reducing expectations for easier Fed policy. The August ADP private payrolls increased only 38K vs 47K expected, suggesting some labour-market cooling and potentially limiting the bearish pressure from Fed expectations.

The market is eagerly awaiting Friday's US NFP, which remains a major near-term volatility catalyst. Until yields and USD ease materially, the fundamental bias is neutral-to-bearish.