Gold: Record losing streak as yields bite – ING

💡 DMK Insight

Gold’s drop below $4,100/oz is a significant signal for traders: it reflects a shift in market sentiment driven by rising real yields and a stronger Dollar. This ten-session decline indicates a bearish trend that could continue if the Dollar maintains its strength and yields keep climbing. Traders should be cautious, as this environment typically pressures gold prices further, especially if geopolitical tensions fail to provide the usual safe-haven support. Watch for key resistance levels around $4,150/oz; a failure to reclaim this could lead to more selling pressure. On the flip side, if geopolitical risks escalate, we might see a short-term bounce, but the underlying fundamentals suggest that any rally could be short-lived. Keep an eye on the correlation between gold and the Dollar, as a sustained Dollar rally could push gold lower in the near term.