Gold Price Rebounds Amid Macro Pressures and Carry Trade Woes

The gold price has rebounded slightly after forming a lower low below $4,325, but technical and macro pressures persist. The recent selling and stronger US dollar have put the metal at resistance in the $4,400-$4,436 region.

Investors are cautious about adding risk as oil prices remain elevated due to the escalating US-Iran conflict, keeping expectations for a more hawkish Fed high. Global bond yields continue to rise, making equities and other risk assets less attractive.

The yen-funded carry trade is also under pressure as Japan's 10-year government bond yield has broken above 3% for the first time since 1996. Higher Japanese borrowing costs can force investors to reduce positions in global markets, creating selling pressure across the board.