Gold Rebounds But Fails to Break Above $4,100 as Wall Street Remains Cautious
Gold prices rebounded last week after coming under pressure at the start of the week. Spot gold began trading at $4,015.83 per ounce on Sunday evening but quickly dropped to a low of $3,982.32 per ounce before buyers stepped in near the lower end of its recent range.
The yellow metal recovered steadily through Tuesday and Wednesday as Treasury yields eased from recent highs and the U.S. dollar lost momentum, allowing prices to climb back above $4,100. However, the rally faded after initial jobless claims dropped to 187,000, their lowest level in decades, reinforcing expectations that the Fed would keep policy restrictive for longer.
Gold broke back below $4,100 as the dollar firmed and traders trimmed exposure ahead of next week's FOMC decision. Despite this, lingering Middle East risks continued to provide some safe-haven support.
Main Street sentiment remained improved after gold defended its $4,000 support level once again, while Wall Street was cautiously bearish or undecided on the metal's near-term prospects.