Gold Holds Above $4,100 Amid Strong Dollar and High Yields

Gold (XAU/USD) maintained its position above $4,100 on Tuesday, despite modest intraday losses. The precious metal touched a two-month low earlier in the day, pressured by a stronger US Dollar and elevated Treasury yields. While expectations of an October Federal Reserve rate hike have faded, markets still assign an 85% chance of another hike by year-end, with 86 basis points of tightening expected over the next 12 months.

The firm US Dollar, supported by geopolitical risks and high bond yields, has extended headwinds for gold. Oil prices hovering near a four-week low have also eased some pressure on the Fed. Attention now turns to the FOMC Minutes scheduled for Wednesday and remarks from Fed officials.

Technically, gold's MACD remains below zero, and the RSI is near 38. A break below $4,098 could expose the metal to further declines toward $3,936, while resistance levels are identified at $4,226, $4,254, $4,316, $4,406, $4,517, and $4,696.

Analysts suggest derivative traders prepare for continued downward pressure on gold as it hovers above the critical $4,100 support level. The strong US Dollar and high Treasury yields are capping rallies, with geopolitical tensions failing to provide sustained safe-haven demand. The FOMC meeting minutes on Wednesday are expected to drive volatility and clarify the market's outlook on interest rates.