Gold Prices Pull Back as Rising Yields and Stronger Dollar Weigh

Key Takeaways

• Gold shed around $90 per ounce on Thursday, with spot prices dipping to $4,511.54 before finding support.
• Rising U.S. Treasury yields and a firmer dollar weighed on the metal, reducing the appeal of non-yielding assets.
• Key support sits between $4,500 and $4,512; resistance is expected around $4,600.

Gold experienced a significant decline on Thursday, shedding around $90 per ounce as rising U.S. Treasury yields and a firmer dollar weighed on the precious metal. After several days of choppy trading, the market broke to the downside, with spot prices dipping as low as $4,511.54 before finding support.

The move came as market participants digested strength in the U.S. dollar and higher bond yields, both of which typically reduce the appeal of non-yielding assets like gold. Earlier in the week, repeated attempts to push above the $4,760 level stalled, opening the door for sellers to take control.

Support near the 200-hour moving average initially held during Tuesday’s session, but it gave way on Wednesday, accelerating the downside momentum into Thursday’s trade. At current levels near $4,560, representing a drop of roughly 1.9%, the price has now tested a key support zone between $4,500 and $4,512, the area of swing lows from late April and early May. Buyers appeared to step in around these levels, preventing a deeper breach for now.

Resistance is expected in the $4,600 area. A decisive break below $4,500 could open the way toward the rising 200-day moving average near $4,322.

While the short-term outlook has turned more cautious, gold’s longer-term drivers, including global uncertainty, central bank policies, and inflation expectations, remain relevant for investors monitoring the market.

This article is general information only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial adviser before making investment decisions.