Dollar and Bond Yields Surge as EUR/USD and Gold Stay Under Pressure

The US dollar and Treasury yields remain strongly supported as rising global inflation pressures and geopolitical risks continue pushing markets toward defensive positioning. Higher inflation data from the US and China, along with rising energy prices, have lifted US bond yields to fresh yearly highs, helping the dollar index move back above 99 and increasing pressure on both gold and the euro.

EUR/USD remains under pressure as the stronger dollar drives the pair lower within its broader consolidation range. Pair has broken below 1.1630 support, further downside is possible toward 1.1590 and potentially 1.1510. However, a sustained move back above 1.18 could improve the outlook and reopen the path toward 1.20 and higher longer-term targets.

EUR/USD Daily Chart

Gold also remains vulnerable after 4 days of consecutive bearish candles, below the 4800 resistance zone. Support near 4500 remains critical. Holding above this area could allow a rebound toward 4650, while a breakdown below 4500 could expose deeper losses toward 4400 and 200 day SMA.

XAU/USD Daily Chart

Overall, rising bond yields, stronger dollar demand, and persistent inflation pressures continue to weigh on metals and major currencies, keeping the broader market tone defensive.