Gold Surges to $4,400 as Yields Retreat
Gold prices surged to $4,400 on Friday as US Treasury yields retreated following the Federal Reserve's (Fed) interest rate hike earlier in the week. This pullback offset the negative impact of the Fed's hawkish comments, which boosted market expectations of further rate hikes and initially weighed down gold.
The precious metal has now extended its gains for a second consecutive day, aiming to close a three-week losing streak. Gold bulls are likely to face resistance ahead of the $4,450 area, where previous recoveries were halted on September 8, 9, and 10.
Despite the recent gains, gold still holds below the 200-day simple moving average (SMA) at $4,541. The Relative Strength Index (RSI) in the daily chart sits just above neutral, hinting at stabilizing momentum, but the Moving Average Convergence Divergence (MACD) remains in negative territory.