Gold Prices Struggle Amid Persistent Inflation and Rising Treasury Yields

The gold market has been struggling to regain momentum after the latest CPI data was released. Inflation came in at 3.4% for August, matching expectations, but failing to show a significant slowdown. This persistence of inflation above the Federal Reserve's 2.0% target means that price pressures remain high.

Markets are now leaning towards a more aggressive monetary policy stance from the Fed, with a nearly 86% probability of raising interest rates to the 4.00% area. This shift in expectations has led to an increase in Treasury yields, reaching fresh highs for 2026 and continuing to favor fixed-income markets over gold.

As long as bonds remain attractive, gold demand may continue struggling to recover, leaving a neutral environment dominant in the short term. The technical outlook also suggests growing weakness near key support levels, potentially opening the door to a more evident neutral phase during the coming weeks.