Gold Treads Water Amid Double Top Formation

The conflict between the US and Iran has now reached its 178th day, causing ongoing instability in the global market. Despite attempts to retest levels from May 14, gold futures have continued to climb, reaching a high of $4,738.21 on Monday.

The recent move above $4,500 was supported by expectations that the government would continue trying to keep longer-term yields under control, while pressure on the dollar encouraged investors to increase exposure to bullion.

Treasury Secretary Scott Bessent announced plans to expand the buyback program and unveiled a fiscal initiative aimed at addressing high borrowing costs. This move has raised questions about whether policymakers are willing to manage borrowing costs rather than allow the bond market to determine them freely.