Gold Price Plunges Below $4,400 as US Yields Rise and Global Tensions Escalate
The price of gold (XAU/USD) dipped below $4,400 on Tuesday as rising US Treasury yields and a risk-averse sentiment pushed the US Dollar higher.
Higher US Treasury yields are putting pressure on gold, with the 10-year yield reaching a one-year high above 4.7% and the 30-year yield hitting fresh 19-year highs above 5.3%.
The safe-haven status of gold is being tested by growing concerns about the resumption of hostilities in the Middle East, following the expiration of a Memorandum of Understanding signed in June between Washington and Tehran.
Technical analysis suggests that key resistance remains at $4,500, with the 200-day Simple Moving Average (SMA) just above this level. On the downside, a break of Friday's low at $4,317 could expose the August 6 low at $4,223 and potentially lead to a deeper decline to around $4,000.