Key Takeaways:
COMEX gold dropped to a two-month low of $4,539.48 per ounce on Tuesday, as a firmer U.S. dollar and expectations of hawkish Federal Reserve policy weighed on the metal.
"The selloff in the longer end of the U.S. Treasuries implied that longer-term interest rates potentially are on the rise, which also indirectly creates a higher opportunity cost for holding gold," said Kelvin Wong, a senior market analyst at OANDA.
The pressure on gold intensified as benchmark 10-year U.S. Treasury yields climbed to their highest level since February 2025. According to the CME Group's FedWatch tool, markets are now pricing in a 50% probability of a Federal Reserve rate hike by the end of the year, a key factor driving investors away from the non-yielding precious metal.
Analysts at J.P. Morgan noted that gold is "stuck in a bit of a technical no-man’s land," capped below its 50-day moving average of around $4,730 per ounce. The bank recently lowered its 2026 average gold price forecast to $5,243 per ounce from $5,708, citing weaker near-term demand. The next significant technical support level for gold is its 200-day moving average, currently around $4,340 per ounce.
Other precious metals also traded lower in the session. Spot silver fell 0.5% to $75.60 per ounce, while platinum lost 0.1% to trade at $1,970.74 per ounce. Palladium saw the steepest decline, dropping 1.1% to $1,396.74 per ounce.
This article is for informational purposes only and does not constitute investment advice.
