Gold Breaks Key Support as Rising Yields and Stronger Dollar Weigh on Bullion

Gold remains under heavy pressure as rising US Treasury yields and a stronger US dollar continue to tighten financial conditions and reduce demand for non-yielding assets like gold. Instead of behaving like a traditional safe haven, gold is currently moving more like a risk-sensitive asset, showing a very strong inverse relationship with both bond yields and the US dollar.

Technically, gold has broken below the key 4500 support zone after already falling below the March uptrend and facing repeated rejection near the 50-day moving average. Momentum indicators continue turning more bearish, with downside pressure building further.

As long as yields and the dollar remain elevated, risks continue to favour further downside toward the 200-day moving average and potentially the 4100 support zone. On the upside, gold would first need to reclaim and hold above 4500 again to stabilise the short-term outlook and allow a recovery back toward 4650.

XAU/USD Daily Chart