Gold continues to decline below $1,950.

On Wednesday, gold was expected to reach new lows, testing $1,950. Investor hopes for a dovish Fed ease are pushing back precious metals. Gold is trading at $1,947.96 per ounce at the time of writing.


US Treasuries are still quite low; they recently eased back to 4.5% from 4.615%. Gold is experiencing downward pressure as markets reevaluate their expectations of the Federal Reserve’s (Fed) willingness to lower interest rates. Gold is testing into chart space around the $1,950 price level.

While still high, US Treasury yields have moderated recently and are no longer as high as they were a decade ago, which has closed a significant bullish pipeline for Spot Gold prices.

Investors had to reevaluate their expectations this week as Fed officials downplayed the likelihood of “sooner rather than later” rate cuts, despite last week’s sharp increase in expectations that the Fed would be pushed closer to starting a cycle of rate cuts.

Market players and traders now expect rate cuts to begin sometime next year, and markets are being forced to adjust their hopes and expectations.