Gold Struggles Amid Rising Oil Prices and Surging Bond Yields

The gold price is struggling this week as oil prices rise above $100 per barrel and bond yields surge globally, making it less attractive to investors.

This is a problem for gold because it does not yield any interest, unlike bonds. With energy prices rising, inflation increasing, and markets pricing in an aggressive interest rate hiking cycle worldwide, the gold price is likely to continue struggling.

However, despite these challenges, the gold price has managed to stay above $4,000 per ounce, a critical support level that has held extremely well. This suggests solid demand for gold remains, even if the short-term road is bumpy.

Ahead of this support level, key prices to watch include $4110 and $4000. Analysts who believe gold could return to $5,000 per ounce argue that a dollar decline would boost the price. However, the dollar has risen 2.5% in the past month and continues to attract safe-haven flows.