Gold Stuck in Range as Oil, Inflation Risks, and Yields Stay Elevated

Gold remains under pressure as rising oil prices, strong US dollar demand, and hawkish central bank expectations continue to weigh on the market. Ongoing Middle East tensions and safe-haven demand are helping limit deeper losses, but higher bond yields and inflation concerns are preventing a stronger recovery.

The biggest driver remains oil prices and the Hormuz situation. As long as supply risks continue, markets expect inflation pressures to stay elevated, reducing the chances of near-term rate cuts and supporting the dollar.

Upcoming US inflation data will be critical. A stronger CPI reading could reinforce expectations for higher interest rates, keeping pressure on gold and Treasury yields moving higher.

Technically, gold is still trading in a consolidation range. Price has broken above the downtrending line started in January, even though the break is not significant. Resistance is seen around the 50 day moving average, 4765 , while support levels are located near 4660, and 4550 if price retraces deeper.

Bottom line: Gold remains stuck between safe-haven demand and pressure from higher yields, stronger oil prices, and hawkish central banks, keeping the market range-bound for now.

XAU/USD Daily Chart