Gold Price Forecast: Fed Rate Fears Drive Gold Breakdown
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Key Points:
- Gold has broken below a major support zone, shifting the short-term outlook toward more downside.
- Strong U.S. data and sticky inflation are keeping pressure on gold through higher yields and a firmer dollar.
- A deeper pullback may create a better setup for the next major gold rally if growth begins to weaken.
Gold (XAU) prices broke below the key $4,400-$4,500 support zone after strong U.S. jobs data, sticky inflation and rising Treasury yields weakened the short term outlook. In my opinion, this breakdown is setting the stage for a more pronounced continuation toward the $3,900-$4,000 support zone before buyers are expected. This article examines the macro pressure from the Fed, inflation, labor data and the technical levels that may define the next move in the gold market.