Gold Tests Key Support as Treasury Yields Continue Climbing

Gold remains under pressure as rising US bond yields, a stronger US dollar, and growing inflation concerns continue to weigh on precious metals. Markets are becoming more defensive as higher energy prices and inflation expectations support a bullish outlook for Treasury yields, reducing demand for non-yielding assets like gold.

Technically, gold is now testing a major support zone near 4550-4500 while remaining below an important descending trendline that has capped price action since March. A breakdown below this support area could trigger a deeper decline toward 4360 which is also the current 200 DMA level.

On the upside, a rebound from current levels could allow gold to retest resistance near 4650, followed by 4765. A sustained breakout above these resistance levels would improve the outlook and could reopen the path toward 4900 and eventually the key 5000 psychological level.

Overall, rising yields and stronger dollar momentum continue to keep short-term risks tilted to the downside unless gold can reclaim key resistance zones.

XAU/USD Daily Chart