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Gold prices (XAU/USD) rebounded from a one-week low near $4,737 during Asian trading hours, partially filling the bearish gap created at the start of the week. However, the rally stalled below the 100-hour simple moving average (SMA), a key technical level, as rising U.S. Treasury bond yields pressured the precious metal. The 100-hour SMA currently acts as a dynamic resistance, limiting further gains despite short-term buying interest.
The struggle to break above the 100-hour SMA highlights the metal's vulnerability to shifting market sentiment. Rising U.S. bond yields, driven by expectations of tighter monetary policy, reduce the appeal of non-yielding assets like gold. Traders are closely monitoring whether the price can stabilize above the SMA to signal a potential reversal of the recent downtrend.
For investors, the key focus remains on the interplay between gold's technical levels and macroeconomic factors. If bond yields continue to climb, gold may face renewed downward pressure. Conversely, a breakdown in the yield rally could provide a tailwind for bullion. Market participants should watch for a decisive move above $4,800 to confirm a shift in momentum.
