Gold Slides Again – Is the $4,700 Rally Losing Steam?
At a Glance
- Gold fell to $4,318.56/oz, a three-week low, marking a fourth straight losing session
- Gold Futures dropped 0.7% to $4,365.00; Silver slipped to $63.94; Platinum fell 0.8% to $1,729.90
- US Dollar Index climbed to 99.79
- Markets now price a 70% chance of a Fed rate hike at the September 15-16 meeting
- Brent crude broke above $95, WTI above $91, after fresh US-Iran tensions
- 30-year Treasury yields topped 5.28%, near levels last seen before August’s bond buyback move
- Gold broke below its 200-day moving average, a key technical warning sign
Gold is sliding fast, and traders are watching to see how far it falls.
Gold prices kept dropping Wednesday, pulling back further from last week’s high near $4,700 as a stronger dollar and rising bond yields fed growing bets on a Fed rate hike.
Key Details
The retreat picked up speed after fresh US strikes on Iranian targets Tuesday, which Tehran answered with retaliation. That pushed oil prices sharply higher, with Brent topping $95 and WTI crossing $91. Pricier energy tends to stoke inflation, and that’s exactly what’s fueling rate hike bets. Fed Governor Michael Barr added to the pressure, warning inflation could get “stuck” after running hot for over five years.
Market Reaction
Bond markets are feeling it too. Long-dated Treasury yields climbed back near pre-intervention levels, with the 30-year hitting 5.28%. Global yields haven’t been this high since 2008, and the dollar’s strength is compounding gold’s pain by making it costlier for overseas buyers.
Why It Matters
Gold just posted its best August since January, powered by debt debasement fears after the Treasury expanded its bond buybacks. That trade is now cooling as yields and the dollar fight back.
Keep an eye on the September Fed meeting and any Iran-related escalation – both could decide gold’s next big move.
Stay ahead of every market-moving headline with QuoMarkets.
Source: Investing.com
