XAU USD

The trading week continues, and for now gold remains under notable pressure in the short term. This can be seen in the performance of XAU/USD over the last three trading sessions, where the metal has declined by more than 2.00%, bringing a bearish bias back into focus after it had lost momentum in recent weeks.

A hawkish Fed, surging short-dated Treasury yields and a firmer dollar failed to deliver the kind of damage usually seen in precious metals.

Gold continues to face challenging conditions in the short term, with the precious metal already recording three consecutive losing sessions and posting a decline of nearly 2.3%. This price action continues to highlight a bearish bias that has become increasingly relevant within the market.

Gold is attempting to stabilize near a pivotal technical zone, with the Fed decision poised to provide the catalyst for the next major move.

Gold and silver are feeling the full force of surging US yields, but the dollar’s failure to join in may be saving them from an absolute drubbing.

Gold has fallen relatively sharply in the first half of today’s session. Hardly a surprise, truth be told. The ongoing macro backdrop is bearish for gold and risk assets in general. Rising oil prices are continuing to pile pressure on government bonds, causing their yields to increase. Rising yields, in turn, increase the opportunity cost of holding assets that pay zero interest, not to mention storage and insurance costs.

As the trading week comes to an end, one of the most relevant developments has been the neutral behavior displayed by gold in the short term. Over the last four trading sessions, price action has registered only a modest move of around -0.36%, a dynamic that highlights the recent lack of momentum around the metal.

Gold’s traditional macro headwinds are firmly back in play, yet the scale of the damage remains limited relative to the size of the rates shock.

Gold is attempting to regain its footing after a sharp pullback, with the September range taking shape ahead of a critical stretch of event risk.

Gold and Bitcoin surged when Treasury first flagged larger long-dated Treasury buybacks in August, while USD/JPY fell sharply. Today’s announcement could determine whether we a resumption or reversal of those moves.

Gold and silver remain unusually sensitive to US dollar direction, with US inflation data and elevated risk of disorderly carry trade unwinds in focus for traders over the remainder of the week.

The trading week is getting underway and, for now, gold has struggled to maintain the strength that characterized its performance in previous weeks. Average price action over the last two sessions shows a decline of roughly 1.5%, reflecting a loss of momentum that has started to highlight a more neutral market environment.