Inflation, hawkish Fed and higher yields weigh on gold (XAUUSD)

Inflation, hawkish Fed and higher yields weigh on gold (XAUUSD) GOLD / U.S. DOLLAR FX_IDC:XAUUSD KrisadaYoonaisil Inflation, a hawkish Fed and higher yields weigh on gold prices Fundamental Analysis 1. Gold prices came under pressure from sticky inflation, as US Oct CPI rose 0.4% MoM (cons. 0.3%), reinforcing expectations of further Fed tightening. Higher oil prices added to inflation risks, while Fed officials struck a broadly hawkish tone. 2. Additionally, a stronger US dollar and elevated Treasury yields weighed further on gold, despite a rebound on bargain hunting. 3. Markets await US PPI data to confirm the inflation trend, while geopolitical tensions remain a risk that could pressure gold if they fuel energy-driven inflation. Technical Analysis 4. After rebounding to a peak at 4150, XAUUSD plunged to its lowest level in over a year below 3870 before edging higher. The new low indicates that the downtrend remains intact, and the rebound is merely a short-term rally within a major downtrend. 5. The price formed lower swings below diverging bearish EMAs, signaling strengthening bearish momentum. 6. If XAUUSD breaks below 3870 again, the price may decline toward the next support at 3700, followed by 3440. 7. Any rebound may face resistance at 3970 before the decline resumes. Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness