Gold slipped to $4,253 on Monday, its lowest level in more than a month, after the Federal Reserve nudged 10‑year Treasury yields past 5%, raising the opportunity cost of holding the metal.
The slide followed a sharp rise in Brent crude to $108 a barrel amid U.S.–Iran tensions and Saudi supply disruptions, while U.S. Producer Price Index data showed an unexpected uptick, feeding inflation worries that pushed investors toward higher‑yielding assets.
Technical traders see the $4,300 pivot as a critical threshold; a sustained dip below that level could push gold toward $4,250‑$4,190, whereas a rebound would test $4,450‑$4,500, according to market‑watchers.
Analysts at Anand Rathi, Citi and JPMorgan stress that the metal’s near‑term outlook remains cautiously bearish, with the Fed’s guidance on the FOMC meeting next week likely to be the decisive catalyst. A dovish surprise could spark a rally, but current sentiment suggests a continuation of the current trend until oil prices ease.
‘We’re watching the Fed’s tone closely,’ said Vedika Narvekar, Research Analyst at Anand Rathi. ‘If the chair frames the hike as a temporary measure, gold could stabilize, but any hint of a tightening cycle will keep the metal in a defensive posture.’