Gold Falls as Yields and US Dollar Exert Renewed Pressure
Gold prices are trending lower during Thursday's trading session following a sharp prior rally. Selling pressure emerged from profit-taking after gold had surged more than 4% to touch a two-month high. Additionally, rising oil prices—driven by US-Iran tensions—have reignited concerns regarding energy-driven inflation, leading the market to assess that the Federal Reserve may maintain a hawkish stance.
On the fundamental front, the decline in gold was also triggered by a recovery in US Treasury yields and the US dollar, both of which had previously weakened due to the US Treasury Department's bond buyback plans. Recent Federal Reserve minutes reveal persistent concerns over rising inflation, with some officials even prepared to support interest rate hikes should price pressures fail to subside.
Gold price at the time of this analysis: $4,486
- Buy if the price moves to $4,490
- Sell if the price moves to $4,481
Resistance 2: $4,504
Resistance 1: $4,495
Support 1: $4,477
Support 2: $4,468
Note: This article is analytical in nature and does not constitute definitive advice. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id