XAU/USD falls 0.7% after US bond yields recover, reducing demand for non-yielding assets like gold.
Gold prices retreated to near $4,490 in European trading, down 0.7% from an 11-week high of $4,527. The decline follows a rebound in US Treasury yields, which climbed 0.5% for 30-year bonds and 0.67% for 10-year notes, diminishing gold’s appeal as a non-yielding asset.
Earlier, yields had dropped after the US Treasury announced plans to double liquidity-support buyback operations for longer-dated securities. However, markets quickly reversed course amid concerns over rising inflation and widening fiscal deficits, pushing yields higher.
Technical analysis shows XAU/USD remains above its 20-day EMA at $4,299.17, maintaining a bullish short-term outlook despite the pullback.