Gold Price Retreats Amid Rising US Yields

Gold prices retreated from a record high of $2,531 as US Treasury yields rose, with the 10-year note up 6.5 basis points to 3.865%. This decline occurred despite dovish signals from the Federal Reserve.

Gold prices declined amid rising US Treasury yields and a stronger US Dollar. While the Federal Reserve hinted at a potential rate cut, mixed economic data and profit-taking contributed to the decline. Investors should monitor technical indicators and key support and resistance levels to gauge future price movements.

Mixed US Economic Data

US economic data was mixed, with higher jobless claims and solid business activity contrasting with ongoing manufacturing contraction. The Federal Reserve Minutes hinted at a potential rate cut in September, but a stronger US Dollar pressured Gold lower.

Factors Contributing to Gold’s Recent Retreat

Rising US Treasury Yields: Higher yields increased the opportunity cost of holding non-interest-bearing gold. A stronger dollar made gold more expensive for foreign investors. Moreover; some investors may have taken profits after gold’s recent rally.

Technical Factors

Gold’s uptrend remains intact, but a daily close below the previous ATH of $2,483 could trigger a deeper pullback. The Relative Strength Index (RSI) suggests that sellers may have the short-term advantage, but Gold’s mid-term outlook remains bullish.

Key Support and Resistance Levels

Support: $2,500, $2,450, $2,398, $2,377
Resistance: $2,531