Gold Breaks Three-Month Trend as Bitcoin Pulls Back Amid Rising Yields

The gold market has broken below its three-month uptrend, while Bitcoin is experiencing a short-term pullback from its nine-month high. The price of gold has been pressured by the sharp rise in U.S. Treasury yields, which are testing levels last seen in 2004 and 2007.

Rising bond yields and elevated dollar strength have contributed to the decline in gold prices. The key support level for gold is near $4,120, corresponding to the 78.6% Fibonacci retracement of its recent advance. If this level breaks, it could expose the psychological $4,000 level and yearly lows.

The Fed's rate-hike expectations remain above 70%, while the Dollar Index holds near yearly highs above 101. This combination of stretched bond yields, elevated dollar strength, and growing geopolitical tensions is creating uncertainty in financial markets.