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Gold retreats from the $4,370 area as upside momentum fades
FXStreet reports XAU/USD was last around $4,367 after bouncing from $4,324, with analysts warning that higher long-end US yields and renewed oil price gains are weighing on the rally.
Gold prices moved modestly higher on Wednesday, returning to the $4,370 area after finding support near $4,300 in the prior session, according to FXStreet.
The outlet cited a mix of macro and market forces, pointing to broad-based US dollar weakness tied to lower US yields ahead of the July Federal Reserve monetary policy meeting, while also noting the technical outlook suggests the rebound may be losing steam.
FXStreet said OCBC expects the metal’s recovery to regain traction only if oil and yields stabilize, or if investment demand strengthens enough to offset the pressure from higher long-end US yields.
On the charts, FXStreet flagged the August 14 low near $4,311 as immediate support, with a wider demand zone around $4,220, while resistance is seen near $4,450 and the 200-day simple moving average around $4,510, followed by the late May highs near $4,600.
Latest closeGold $4,432.00 ▲1.6%