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Gold falls as dollar strengthens

Gold falls below $3030 as yields rise and investors seek safety

Gold prices experienced a noticeable decline today, trading near $3025 per ounce, down from last week’s highs above $3130. The drop comes as the US dollar gained strength and 10-year Treasury yields rose to around 4.40%, marking the highest level in three weeks. This decline followed renewed investor interest in dollar-based assets, particularly after recent US economic data showed labor market resilience, reinforcing expectations that the Federal Reserve may maintain tight monetary policy for longer — a negative for non-yielding assets like gold.

 Outlook:

• If bond yields continue to rise, gold may retreat further toward the $2980 - $2950 range.
• However, any signs of weaker US data or heightened geopolitical tensions could lift gold back above $3050 - $3080.

Despite today’s pullback, gold remains a key hedge against long-term risks, especially amid ongoing concerns over global economic slowdown.