Gold Stays Range-Bound as Risk Appetite Limits Upside

Gold is facing short-term weakness and indecision after falling nearly 2% over the last three sessions and failing to move closer to the $5,000 level. Buying interest remains limited as risk appetite improves and investors shift toward risk assets instead of safe-haven assets like gold.

Expectations of possible US–Iran negotiations and rising market confidence are reducing demand for gold. At the same time, activity in the gold futures market has slightly increased recently, but overall participation is lower than last month, showing weaker demand rather than stronger buying interest.

Another important pressure factor is the US 10-year Treasury yields, which remain stable near 4.3%. Gold has a strong negative correlation with yields (around −0.86), meaning stable or rising yields continue to limit upside momentum.

Technically, gold is showing a neutral structure with a possible short-term bearish trendline forming. Indicators like RSI near 50 and MACD near zero confirm the market is currently balanced between buyers and sellers.

Key levels to watch:

$5,000 remains a major resistance.

$4,860 acts as a near-term sideways barrier.

$4,550 is the key downside support.

XAU/USD Daily Chart

Bottom line: Unless risk sentiment weakens or bond yields fall clearly, gold is likely to remain range-bound with a slightly bearish short-term bias.