Gold price (XAU/USD) declined by 0.4% to near $4,630 during the European trading session on Tuesday, following a failed attempt to extend its rally above $4,700 earlier in the day [1]. The precious metal struggled to attract bids despite a sharp 3% drop in WTI Oil prices to around $82.00, which has contributed to a significant decline in US Treasury Yields [1]. Specifically, the 10-year US bond yield fell by 0.6% to approximately 4.67%, while the 30-year yield dropped 0.55% to near 5.2% [1]. Lower oil prices have reduced inflation expectations, easing the risk of further interest rate hikes by global central banks and weighing on US Treasury Yields, which typically enhances the appeal of non-yielding assets like gold [1].
From a technical perspective, XAU/USD is trading at $4,637.77, maintaining a bullish near-term tone as it remains above the 20-day exponential moving average (EMA) at roughly $4,387.61 and above key Fibonacci retracement supports [1]. The Relative Strength Index (RSI) is around 70.8, indicating that gold is in overbought territory and suggesting that while upside momentum is strong, the metal may be vulnerable to consolidation or a corrective pause [1]. Immediate resistance is noted at the 50% Fibonacci retracement near $4,779.97, with further resistance at $4,972.47, $5,246.55, and $5,595.68 [1]. On the downside, initial support is at the 38.2% retracement around $4,587.46, followed by the 23.6% level at $4,349.27 and the 20-day EMA near $4,387.61 [1].
Looking ahead, investors are expected to focus on the upcoming US Personal Consumption Expenditures (PCE) inflation data for July and the outcome of the Jackson Hole Symposium, both of which could influence gold's direction and market sentiment [1].
CONCLUSION
Gold prices have retreated from recent highs amid falling US Treasury Yields and oil prices, but the broader bullish structure remains intact above key technical supports. Market participants are now turning their attention to upcoming US inflation data and the Jackson Hole Symposium for further cues on gold's trajectory.