Gold Plunges as Analysts Point to an “Unfavorable Change”

Gold turned sharply lower on Tuesday, falling more than 2% to a two-week low after rising to its strongest monthly performance since January. Higher U.S. Treasury yields and a stronger dollar weighed on the metal, while analysts pointed to a technical warning after prices fell below the 200-day moving average.

Spot gold dropped 2.4% to $4,342.20 an ounce after touching $4,362.89, its lowest intraday level since Aug. 19. The 200-day moving average stood at $4,528. December gold futures fell 1.9% to $4,396.40 an ounce.

Jim Wyckoff, a market analyst at American Gold Exchange, said technical selling had emerged as global bond yields reached highs not seen for years. “We are currently seeing some technical selling pressure. Global bond yields have risen to highs not seen for years, and these factors are weighing on the gold market. Gold prices have fallen below the 200-day moving average, which is an important technical signal,” he said.

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We are currently seeing some technical selling pressure. Global bond yields have risen to highs not seen for years, and these factors are weighing on the gold market. Gold prices have fallen below the 200-day moving average, which is an important technical signal.

Rising tensions in the Middle East have fueled inflation concerns and contributed to global bond selling. U.S. Treasury yields climbed on Tuesday to their highest level since January 2025. Gold had reached a more than three-month high the previous week, but prices fell more than 3% in a single day after Federal Reserve Chair Kevin Warsh warned that the central bank might still have “more work to do” if inflation does not return to its 2% target. Traders subsequently increased their bets on a September Fed rate hike.

The CME FedWatch tool put the probability of a rate increase this month at 66%. Investors are turning to Wednesday’s ADP employment report and Friday’s nonfarm payrolls data for clues about the economy and monetary policy. Wyckoff said gold’s path of least resistance in the short term could be consolidation or further volatility and decline. Spot silver fell 2.9%, platinum dropped 1.9% and palladium declined 3.2%.

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more work to do