Gold Rises on Falling Oil Prices, Lower US Yields
Gold prices have risen to nearly $4,360 per ounce as falling oil prices and lower US Treasury yields provide support. The precious metal gained almost 2% in the previous session.
The decline in oil prices, which has been ongoing for a third consecutive session, has eased inflation concerns and pushed bond yields lower. Oil prices have fallen due to Saudi Arabia's efforts to restore supplies through the East-West pipeline.
US Treasury yields have also retreated from multi-year highs, with the 10-year yield falling to 4.93% after briefly moving above 5%. This development has provided temporary support for gold, despite ongoing concerns about further Federal Reserve tightening.
The Fed has signalled that additional interest rate increases may be necessary to bring inflation under control, with markets currently estimating a 53% probability of another rate hike as early as October. This remains a risk factor for gold, but the current technical analysis suggests a decline towards $4,333 and potentially even $4,215.