Gold Price Forecast: Softer Inflation Lifts Gold but High Yields Cap Gains
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Key Points:
- Gold is consolidating near its long-term support around $4,000.
- High real yields may limit the gold price rebound.
- A break above $4,200 could start the next rally.
Gold (XAU) prices remain near the important $4,000 support as high real yields and ETF outflows offset the weaker US dollar and strong central bank demand. In my view, gold may consolidate between $3,950 and $4,200 in the short term but a break above $4,200 could start the next rally. This article examines the key macro drivers, technical levels and market risks that may shape the next move in gold.