Gold falls to multi-week lows as rising yields weigh on bullion

Gold fell to multi-week lows on Thursday as rising Treasury yields and a firmer U.S. dollar continued to weigh on bullion.

With markets still facing geopolitical uncertainty and a more cautious rates backdrop, pressure on non-yielding assets such as gold has remained firmly in place.

Comments from Federal Reserve and European Central Bank officials added to the move in yields, as policymakers continued to stress the need to remain vigilant against persistent inflation pressures.

With both U.S. and European yields moving higher, the short-term backdrop for gold has become more difficult. Investment flows have also remained fragile, with gold-backed ETFs seeing outflows in recent weeks.

Looking ahead, today’s U.S. PCE inflation and GDP data will be important for the next move in yields and, by extension, gold. If inflation stays elevated and growth remains firm, that would reinforce the current pressure on bullion. Even so, ongoing central-bank buying should continue to provide longer-term structural support for the metal.

From a technical perspective, gold continues to trade within its range, with the all-time high printed in January acting as resistance. The recent 8% decline has seen price find immediate support at the daily 200 SMA, much as it did in March. From a portfolio perspective, we remain flat after selling the long positions we had held since March 2024 at the start of the year.

We continue to wait for a breakout and a clearer trend direction. With the broader trend still bullish, we favour a move to the upside, but we will wait for confirmation before buying back in, with $10,000 remaining the next long-term target. We remain equally selective across other commodities, with capital currently better deployed where trends are clearer.