XAU/USD declines 0.4% to near $4,630 despite lower yields, as oil price slump eases inflation concerns and reduces rate hike risks.
Gold prices retreated 0.4% to around $4,630 in European trading Tuesday, paring earlier gains after failing to sustain levels above $4,700. The decline comes despite a sharp drop in US Treasury yields, which typically boosts demand for non-yielding assets like gold.
West Texas Intermediate crude fell 3% to near $82.00, easing inflation fears and reducing expectations for further central bank rate hikes. The 10-year US Treasury yield dropped 0.6% to 4.67%, while the 30-year yield fell 0.55% to 5.2%.
Technical indicators show XAU/USD remains bullish, trading above its 20-day exponential moving average at $4,387.61 and key Fibonacci retracement levels. The Relative Strength Index at 70.8 suggests overbought conditions, signaling potential consolidation ahead.