Gold Fights to Avoid Breakdown Amid Hawkish Fed and Surging Yields
Gold prices have been in a precarious situation lately, as Treasury yields surge and the Federal Reserve becomes increasingly hawkish. However, despite this unfavorable macro backdrop, gold has managed to avoid a breakdown at its FOMC swing low of $4235.
The weekly chart shows that sellers were unable to take out this key level, with buyers stepping in to support the lows. This resilience is particularly notable given the aggressive selling pressure on bounces, which has led to a series of lower-highs in gold.
Looking at the daily and four-hour charts, we can see a clean zone of resistance around $4300-4320 that bulls need to break through in order to re-test the prior week high at $4400. However, this would likely require some softening in Treasury yields, which is not currently evident.
Despite these challenges, it's worth noting that gold hasn't broken down harder yet, which could be a sign of underlying strength. The question remains whether bulls can change the tone and force a break above $4320, or if bears will continue to exert pressure and push gold lower.