Gold Falls for 3rd Consecutive Week: Is There Still Upside Potential

Gold posted its third consecutive weekly decline, raising questions about whether the precious metal can still attract buyers amid a stronger dollar and rising bond yields.

The yellow metal has been under pressure as the US dollar index strengthened and the 10-year Treasury yield climbed, reducing the appeal of non-yielding assets like gold. This week's drop extends a losing streak that has erased some of the gains from earlier in the year. Traders are now assessing whether the selloff is overdone or if further downside is likely.

For gold and precious metals traders, the current environment highlights the inverse correlation between gold and real yields. When real yields rise, the opportunity cost of holding gold increases, often leading to selling pressure. Additionally, a stronger dollar makes gold more expensive for holders of other currencies, dampening demand. Despite the recent weakness, some analysts point to central bank buying and geopolitical uncertainty as potential supports. Traders can track real-time gold price movements on NowPrice's live gold dashboard to monitor key levels.

Looking ahead, the focus will be on upcoming US economic data, particularly inflation readings and employment figures, which could influence the Federal Reserve's policy path. Any shift in rate expectations could trigger a reversal in gold. Traders should also watch for any escalation in geopolitical tensions that might revive safe-haven demand. The $2,300 level is seen as a key support, while resistance lies near $2,400.