XAU/USD Elevated US Treasury yields and growing Fed rate hike forecasts continue to put pressure on the non-yielding metal.Tensions between the US and Iran fuel demand for the US dollar as a safe haven, which increases the pressure on gold prices to decline. Although oversold momentum indicators may restrict the short-term decline, XAU/USD retains a bearish technical trend below important moving
the beginning of the week, gold (XAU/USD) is still facing significant selling pressure due to growing anticipation of additional monetary tightening from the Federal Reserve (Fed). The appeal of the non-yielding precious metal is being diminished by rising oil costs, which are raising concerns about inflation and maintaining high US Treasury
the meantime, ongoing hostilities between the US and Iran are fuelling demand for the US dollar (USD) as a safe haven, which puts more pressure on gold. The likelihood of another Fed rate hike in October is now priced in by markets at about 68%, and XAU/USD will probably continue to be significantly influenced by impending remarks from Fed officials and critical US economic data. XAU/USD is trading at $4,142.32 in the daily chart above, maintaining a negative near-term bias as it stays below the 200-day simple moving average (SMA) at $4,540.39 and the 100-day SMA at $4,298.70. Additionally, the pair is still below the declining trend-line reference at $4,305.00, indicating that recent increases are still limited within a larger corrective phase. At 35.69, the Relative Strength Index (14) is slightly above oversold territory, suggesting that the downward momentum is slowing but has not yet stopped.
