Spot Gold Drops to 4,366 USD/ounce After Weekly Rally
Gold prices corrected 0.27% Monday as US bond yields hovered near 5%.
Key points
- Spot gold fell 0.27% to 4,366 USD/ounce on Monday after a strong weekly gain.
- All 16 surveyed Wall Street experts predict further gold price increases this week.
- US 10-year Treasury yields remain near 5%, pressuring gold despite geopolitical risks.
Spot gold prices fell 0.27% to 4,366 USD/ounce on Monday morning. This decline followed a strong weekly recovery that ended a three-week losing streak.
The adjustment reflects a pause in momentum rather than a trend reversal. Investors are waiting for new US economic data to clarify the path of interest rates.
High yields limit upside potential
The US Federal Reserve raised rates by 0.25 percentage points recently. The target rate margin now sits at 3.75-4.00%.
Ten-year US Treasury bond yields have returned to the 5% threshold. This level reduces the appeal of non-yielding assets like gold.
A stronger US dollar adds further pressure on precious metal prices. However, geopolitical tensions in the Middle East continue to support safe-haven demand.
Market sentiment remains bullish
A survey by a precious metals website found all 16 experts predict gains. This indicates a strong consensus among professional traders.
Among 220 individual investors polled, 58% expect gold prices to rise this week. Only 24% predicted a decrease, while 19% anticipated flat prices.
Key technical levels define next moves
Analysts view the 4,396-4,405 USD/ounce zone as critical for upward momentum. Breaking this range would confirm the continuation of the recent rally.
Support sits near 4,331 USD/ounce if selling pressure increases. Traders monitor these levels to gauge the next directional move.
