Gold (XAU) lost 2.13% last week and closed Friday near $4,285. The 10-year Treasury yield surged above 5% while the US dollar gained 0.82% over the week. Both eased slightly on Friday, but gold found little relief. The PCE inflation report on Wednesday could show whether that pressure will continue in gold. In my view, gold needs real yields and the dollar to ease before it can make a strong recovery. This article discusses the signals from the technical structures of the US Treasury yields and the US dollar to understand the next move for gold.
Gold Price Forecast: 5% Yields and Strong Dollar Cap Rebound Ahead of PCE
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Key Points:
- Rising real yields continue to pressure gold.
- The US Dollar Index faces resistance at 101.80.
- Gold needs to hold $4,180 to avoid a deeper decline.