High US Treasury Yields Pressure Gold Prices; Gold Returns to Lower Box Boundary

English summary

Spot gold fell to around $4,120 per ounce in early Asian trading on Wednesday. Safe-haven demand from geopolitical conflicts is offset by inflation and high interest rate expectations driven by elevated oil prices, causing gold to fluctuate between its anti-inflation attributes and opportunity cost pressures. Expectations of the Fed maintaining high rates strengthen the opportunity cost of holding gold. Technical indicators show short-term moving averages in bearish alignment, suggesting gold may oscillate within the $4,065-$4,170 range.