Gold Stalls as Oil Climb and Yields Remain Elevated

Gold prices stalled on Tuesday as oil prices climbed to near $90 and US yields remained above 4.70%. This combination led to increased pressure on gold sellers, causing it to pull back from its morning high of $4,435.25.

The dollar remains flat at around 99.84, which has taken away the currency-related tailwind for gold. However, a soft consumer price index (CPI) print could potentially reopen the trade that carried gold to its previous highs.

Gold's uptrend is intact as long as it holds above Monday's close, but a close below this level would form a reversal pattern indicating a deeper correction off the recent rally. The next key event for gold traders will be the CPI print on Wednesday, which could have a significant impact on gold prices.

The current market situation suggests that structural demand and returning Western buyers are supporting gold prices above the correction lows, but these factors alone are not enough to drive gold higher.