Gold prices fell on Thursday, driven by rising Treasury yields and a stronger U.S. Dollar. Spot gold, XAUUSD, traded at $5085.28 at 15:31 GMT. This marked a decline of $55.66, or 1.08%.
The market is lower for the week. Fears of oil-driven inflation are pushing yields higher and reducing bets on Federal Reserve rate cuts. Traders now see only a 30.8% chance of a June rate cut, with a 65.9% chance the Fed will hold rates steady.
A longer Middle East conflict could mean higher crude oil prices. U.S. crude oil recently touched its highest level since June 2025. Higher yields also make the U.S. Dollar more attractive, weighing on demand for dollar-denominated gold.
Technically, gold faces critical support at $5002.31. A decisive break below this level could send prices towards the 50-day moving average at $4855.42. Overcoming resistance at $5143.89 would signal buyer interest.