Gold Under Pressure as Bond Yields Rise

Gold (XAU/USD) remains under strong short-term selling pressure after falling about 12% in the last five sessions. One major reason is rising U.S. bond yields. After the Federal Reserve kept rates at 3.75% with a neutral outlook through 2027, U.S. 10-year yields moved close to 4.4%, making bonds more attractive than gold, which does not pay interest.

At the same time, higher yields are supporting the U.S. dollar near the 100 level on the DXY index. A stronger dollar usually weakens gold because it becomes more expensive for global investors.

Technically, gold has broken its previous uptrend and now shows a short-term bearish bias. RSI confirms selling pressure, though it is close to oversold levels, and the three white soldiers candle pattern on the four-hour timeframe could allow temporary rebounds. Key resistance stands near 4,976, while 4,300 remains the major support. A break below 4,300 could confirm a deeper bearish trend.

XAU/USD 4h Four-Hour Chart

Overall, rising bond yields and a stronger dollar are the main reasons gold remains weak in the short term.