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Gold prices have been falling in the last few days after last week’s post-FOMC pop faded amid rising interest rate expectations, higher oil prices and a strengthening US dollar. As before, I wasn’t convinced gold would thrive in the current macro backdrop.
Gold and silver had held up surprisingly well against surging US yields. Wednesday’s DXY breakout may have changed that equation.
The trading week continues, and for now gold remains under notable pressure in the short term. This can be seen in the performance of XAU/USD over the last three trading sessions, where the metal has declined by more than 2.00%, bringing a bearish bias back into focus after it had lost momentum in recent weeks.
EUR/USD falls to a 2-month low despite Eurozone growth picking up. Gold under pressure as a stronger USD offsets falling oil prices.
Gold has started the new week on the back foot after ending a three-week losing streak with gains over the final two sessions of last week. The rebound came as the dollar’s rally stalled and oil prices retreated, while a broader improvement in risk appetite lifted major equity indices and extended Bitcoin’s recovery to $85,000. For now, consolidation is the name of the game, but if the US dollar, bond yields or oil prices start moving higher again then this will negatively impact the price of gold.
A hawkish Fed, surging short-dated Treasury yields and a firmer dollar failed to deliver the kind of damage usually seen in precious metals.
The gold price outlook is holding a bullish structure as crude oil falls more than 8% from monthly highs and U.S. Treasury yields stall.
Gold prices rallied sharply today, reversing yesterday’s losses and some. It is quite common for markets to reverse the FOMC-related moves within 24 hours and yet again this has proven to be the case. Now that we are back to pre-FOMC levels, the key question is where do we go from here? While gold may have formed a technical bullish signal today, the fundamental backdrop remains tied pretty much to the same factors that have been weighing on prices lately...
Gold continues to face challenging conditions in the short term, with the precious metal already recording three consecutive losing sessions and posting a decline of nearly 2.3%. This price action continues to highlight a bearish bias that has become increasingly relevant within the market.
Gold is attempting to stabilize near a pivotal technical zone, with the Fed decision poised to provide the catalyst for the next major move.
Gold, Silver, DXY Outlook: Charts test defining support levels as crude oil prices hold above $100, U.S. Treasury yields move higher and hawkish FOMC risks come into focus. Key scenarios to watch.
Gold price outlook has turned defensive as rising bond yields lift the cost of holding a metal that pays no interest and the dollar firms.
Gold and silver are feeling the full force of surging US yields, but the dollar’s failure to join in may be saving them from an absolute drubbing.
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