The legend in the InstaSpot team!
Legend! You think that's bombastic rhetoric? But how should we call a man, who became the first Asian to win the junior world chess championship at 18 and who became the first Indian Grandmaster at 19? That was the start of a hard path to the World Champion title for Viswanathan Anand, the man who became a part of history of chess forever. Now one more legend in the InstaSpot team!
Borussia is one of the most titled football clubs in Germany, which has repeatedly proved to fans: the spirit of competition and leadership will certainly lead to success. Trade in the same way that sports professionals play the game: confidently and actively. Keep a "pass" from Borussia FC and be in the lead with InstaSpot!
The calm before the storm can be deceptive. On Tuesday, gold suffered its worst day in almost a month as a US Treasury sell-off pushed 30-year yields to near two-decade highs. On Wednesday, the metal caught its breath: selling in Treasuries eased, and the pressure on the non-yielding precious metal abated somewhat.
Gold's recovery above $4,400/oz has been supported by investor demand and central?bank buying, notably from China. According to Bank of America's fund-manager survey, the share of respondents who consider gold undervalued rose to its highest level since March 2023.
But geopolitics is ready to upset the narrative. US President Donald Trump said talks with Tehran are not underway and that the memorandum of understanding on the Strait of Hormuz expired without extension. In that scenario, energy-driven inflation is a direct headwind for the Fed and, consequently, for XAU/USD: rising oil pushes inflation up, higher inflation forces the central bank to keep rates higher for longer, and higher rates weigh on interest-free gold.
Yield dynamics
TD Securities warns that a "renewal of selling pressure" may still not materialize even as recent buying momentum in the metal weakens. ING Bank reminds that rising Treasury yields raise the opportunity cost of holding a non-coupon asset — a classic form of monetary tightening for gold.
Still, the long end of the curve is increasingly worrying the market. Bondholders fear governments will struggle with spending; the budget deficit and the opacity around new Fed chair Kevin Warsh add to the nerves. The 30-year yield at a 19-year peak reflects both the Iran conflict and a debt?hungry technology sector borrowing heavily amid the AI boom.
Many analysts see the sell-off as something more fundamental — an economy that stubbornly refuses to slow even with rates that once seemed high. If the 2008 crisis began an era of very low rates, the current reversal could be a return toward a previous norm where money is expensive again.
Saxo Bank even allows for a scenario in which the unusual backdrop — rising yields alongside rising gold — becomes the new normal: the historical inverse relationship between these assets appears to be weakening before the market's eyes.
So, the fate of gold in the coming days will be decided not on the physical market but in the July FOMC minutes and Kevin Warsh's speech at Jackson Hole. Will $4,400 hold if Treasury yields resume their advance?
Technically, on the daily chart, XAU/USD faces the risk of forming a 1-2-3 reversal pattern. A drop below $4,310 would be a sell signal. As long as gold remains above that level, buying is the relevant tactic.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.
