Dollar weakened and Treasury yields retreated from their post-inflation highs. The rebound followed the metal’s sharpest sell-off in months, but prices had not yet confirmed that the correction was over, with support near $4,100 and resistance still above the market.
The pressure intensified after U.S.
Those figures revived expectations that interest rates could remain higher for longer or rise again, a development that generally increases the opportunity cost of holding gold because the metal does not pay interest. The dollar and Treasury yields initially strengthened after the inflation release, weighing on gold, before both reversed part of those gains and allowed the metal to recover.
Central-bank purchases have helped limit the decline in recent weeks, even as the dollar strengthened and yields stayed elevated. That demand has supported prices but has not, by itself, established a new uptrend. Confidence among bullish investors was also weakened by the sell-off, leaving the near-term direction dependent on whether gold can move above nearby resistance.
The broader 2026 record has been unusually volatile.
Further losses could come from a stronger dollar, interest-rate increases beyond expectations, improving investor appetite for risk or technical selling. Conversely, renewed geopolitical or economic stress, a shift toward easier-rate expectations and sustained long-term demand could support prices. Historical analysis cited in the midyear assessment indicated that declines of more than 10% can attract buyers, but the latest rebound alone does not establish that a durable recovery has begun.