Gold Treads Water Amid Hawkish Fed and Rising Yields
Gold prices have been under pressure due to rising Treasury yields and an increasingly hawkish Federal Reserve. Despite this, gold has managed to avoid a more significant breakdown over the past two weeks.
The macroeconomic environment is currently unfavorable for gold, but there's still a possibility for reserves to flow into assets like gold or Bitcoin in the long term. This could support the bullish argument and provide a silver lining for investors.
Looking at the charts, it appears that gold has been forming lower-highs, indicating increasing aggression from bears. Unless bulls can change the tone soon, this could set up a downside break and test of a deeper support level around $4k.
On the other hand, if buyers can step in earlier and break above the $4100 area, which had set highs in late-July, it could open the door for a re-test of the prior week high at $4400 and then the early-September high at $4500.