Gold Drop Widens to 2% as $4,000 Level Under Threat, Risking Further Drop of Over 12% - TradingKey

AI desk brief

Spot gold fell 2% to a low of $4,059/oz and is testing the $4,000 area, with the selloff driven by rising U.S. Treasury yields, a stronger dollar, hawkish Fed remarks and fading geopolitical risk premium. The article argues that higher real yields are raising the opportunity cost of holding bullion and prompting quantitative profit-taking and safe-haven outflows.

Near term, a failed retest of $4,000 could open a deeper decline toward $3,500-$3,550, with the 200-day moving average cited as support. If gold stabilizes in the $3,900-$3,980 zone and inflation cools or geopolitical demand returns, the piece sees scope for a rebound toward $4,120-$4,180 and a renewed test of the $4,300 all-time high.