Gold Loses Momentum as Yields Rise and Safe-Haven Demand Fades

Increasing US bond yields and reducing geopolitical conflict helped gold to lose most of its value. Having reached a high of $4116 last week, it is now around $4033.

Rising U.S. Treasury yields, a stronger currency, and diminishing market predictions for near-term Federal Reserve rate reductions or looser monetary policy have driven gold under great pressure in the last two days. Higher yields make non-yielding assets like gold less appealing; a stronger dollar raises its price for foreign purchasers. Concurrent with this, increased risk reduction across markets has sparked profit-taking and forced liquidation of leveraged holdings following the latest rebound, therefore quickening the short-term decline. Looking ahead, Treasury yields, the dollar's strength, and any changes in Fed policy predictions will be the main things to watch.

 Near -term support -$4000.  Major bearishness below $3940. Any violation below $4000 targets $3980/$3940. Near-term resistance - $4050/$4064/$4080/$4116/$4145/$4205/$4245.

 It is good to sell on rallies around $4052-55 with SL around $4100 for a TP of $3940/$3900/$3800.