Gold Rebounds as Brent Crude Price Falls Over 8%

The gold price has rebounded as Brent crude oil has fallen more than 8% from its monthly highs. This decline in oil prices has alleviated inflationary pressure and boosted risk-on sentiment across major assets. Razan Hilal, a Market Analyst at StoneX Media, notes that the pullback in Brent crude has allowed gold to maintain its bullish structure.

The 10-year U.S. Treasury yield is also experiencing a stall, testing levels not seen in years with momentum extended. This setup is reminiscent of an extended consolidation phase observed in the past when it appeared. Meanwhile, gold remains above an uptrend support line that extends over a decade and connects consecutive higher highs since 2016.