Gold Slips Below Key Support as Dollar Strength and Yields Surge

Macroeconomic Headwinds

The market is pricing in a 'higher for longer' interest rate environment as US service-sector inflation remains sticky. This has revitalized the dollar, making gold more expensive for international buyers and leading to a rotation out of precious metals.

Geopolitical Support Floor

Despite the dollar-driven sell-off, maritime security risks in the Middle East provide a resilient floor. Analysts note that safe-haven demand remains active near the $4,950 mark, preventing a full-scale liquidation of long positions.