XAU/USD drops for a second day, testing year-to-date lows as the dollar index strengthens to multi-month peaks.
Gold prices fell below $4,100 on Wednesday, extending losses for a second session as the US Dollar Index climbed to 13-month highs near 102.00. The move pressures XAU/USD toward key support levels, including the year-to-date low of $4,023 and the $4,000 psychological mark.
The dollar’s rally follows recent strength in US economic data, reinforcing expectations of sustained monetary policy divergence. Gold had previously held above $4,100 but now faces renewed selling pressure amid rising Treasury yields and a firmer greenback.
Market focus remains on whether XAU/USD can stabilize above $4,000 or if further downside momentum will emerge in the near term.