Gold falls to two-week low as rising Treasury yields, dollar weigh - cnbc.com

AI desk brief

Gold slid 2.7% to $4,329.47/oz, a two-week low, after breaking below its 200-day moving average near $4,528 and triggering additional technical selling. U.S. gold futures fell 2.3% to $4,377.40, with the move driven by elevated Treasury yields and a stronger dollar, both of which are raising the opportunity cost of holding non-yielding bullion.

U.S. yields rose to their highest since January 2025 as Middle East tensions stoked inflation fears and sparked a global bond selloff. Market participants also shifted to a more hawkish Fed backdrop after Chair Kevin Warsh said the central bank still has “work to do” if inflation does not return to target, pushing traders to price a 68% chance of a September rate hike, according to CME FedWatch. Analyst Jim Wyckoff said the combination of high global bond yields and the moving-average break is adding technical pressure, and he noted the same weak setup is likely affecting silver.

Near term, the path of least resistance looks sideways-to-lower unless yields retreat or the dollar reverses. Traders will watch Wednesday’s ADP report and Friday’s nonfarm payrolls for confirmation of the policy outlook; another hot labor print would likely reinforce the bearish setup for XAU and, by extension, XAG. The key technical focus is whether gold can stabilize back above the 200-day average, as failure to do so risks more systematic selling.