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Gold pulled back this week, slipping around 1.2% as key support gave way ahead of the Fed’s rate decision

Reddit r/investing·u/ChartNavigator·about 1 month ago
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#gold#yields#pulled#around#support#article
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Gold pulled back this week, slipping around 1.2% as key support gave way ahead of the Fed’s rate decision On the surface, it looks like a simple move, but the drivers behind it are more layered. Rising oil prices are keeping inflation expectations elevated, which in turn pushes yields higher. And when yields rise, assets like gold, which don’t generate income, naturally become less attractive. At the same time, markets are already positioning for a potential rate hold, reinforcing that same dynamic where investors lean toward yield-bearing assets over traditional safe havens. What makes this moment interesting is that gold is being pulled in two directions. On one side, ongoing geopolitical tension continues to support its role as a defensive asset. On the other, macro forces like higher yields and a stronger dollar are putting pressure on it. Until one of these forces clearly takes the lead, the result is likely to be continued volatility rather than a clean trend.…

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