Gold price plunges as Oil shock sends yields soaring
The sell-off in global bond markets put pressure on precious metals.
Gold continues to see a lot of noisy action, as interest rates are still causing a bit of struggle for gold traders, with an underlying uncertainty in the Middle East being the biggest cause. This market will remain one that is choppy for the time being.
Gold softens as firm US Dollar, higher yields and rising Fed hike bets weigh
Gold market outlook turns bearish as rising yields, inflation fears, and dollar strength pressure XAU/USD at critical support.
Gold rose to 4,600 USD per ounce on Tuesday, continuing its recovery from the previous session, and is now trading around 4,548 USD. Market sentiment was supported by hopes of a possible resumption of negotiations between the US and Iran, which has somewhat eased concerns over inflation and the energy crisis.
Gold managed to fall below the 4590 support and managed to add more of a boost drop ahead of the support zone 4500-10. As we see over the chart, and as long as the market remains above 4500-10, a chance for another rebound towards the 4850-90 zone could hit the market.
With geopolitical risk premium fading due to the ongoing truce, focus shifted to macro signals after sticky inflation data. Gold broke lower to $4,540 targeting $4,503 while silver held $76 Fib support with mild stabilization.
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