Gold Faces Heavy Selling Pressure
Spot gold came under strong selling pressure early in the week amid rising financial market volatility. The precious metal dropped over 1%, hitting a low of $4955.34 per ounce, marking the sharpest intraday decline in recent weeks.
Stronger Dollar Weighs on Bullion
A rebound in the U.S. dollar index has made dollar-denominated gold more expensive for foreign buyers. At the same time, easing geopolitical tensions have reduced safe-haven demand. Rising Treasury yields have also increased the opportunity cost of holding non-interest-bearing assets like gold.
- Technically, gold has broken below key support at $4980
- Next downside target lies in the $4930–$4940 range
- Increased volatility expected amid shifting market sentiment
Traders await upcoming U.S. economic data, particularly core PPI and CPI, which could influence the Federal Reserve’s rate path and trigger further price movements.