Gold (XAU) prices traded around $4,300 on Thursday as investors assessed the first rate hike by the Federal Reserve in more than three years. The 10-year Treasury yield remained elevated near 5% while the U.S. dollar reached seven-week high. These moves increased pressure on gold but the price recovered from the six-week low. In my view, the next move in gold will depend on whether Treasury yields extend their rise or retreat after the initial Fed reaction. This article examines how the Fed decision, Treasury yields and the relationship between gold and silver may shape the next move.
Gold Price Forecast: Fed Hike and 5% Treasury Yields Test Recovery
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Key Points:
- The Fed rate hike leaves gold’s recovery vulnerable to further tightening.
- A 10-year Treasury yield break above 5.30% could challenge the long-term trend in gold.
- The $4,000 area remains a key long-term support level for gold.