Moreover, rising US Treasury yields further limit gold’s upside. The 10-year yield climbed four basis points to 4.40%. Higher returns on government bonds make non-yielding assets, such as gold, less attractive.
Despite bearish pressure, the underlying demand for gold remains strong. The World Gold Council reported that gold ETFs experienced a record inflow of $38 billion in the first half of 2025, with holdings increasing by 397.1 metric tons to 3,615.9 metric tons. Furthermore, the People’s Bank of China added 70,000 tons to its reserves, bringing total purchases since November to 1.1 million tons. While these institutional moves reflect confidence in gold’s long-term value, short-term price action remains sensitive to macroeconomic data and geopolitical developments. The FOMC minutes on Wednesday and US unemployment claims on Thursday will define the next move in gold prices.
Gold Technical Analysis
XAUUSD Daily Chart – Ascending Triangle
The daily chart for spot gold shows that the price is consolidating within an ascending triangle and is seeking its next direction. The price has closed below the 50-day SMA, increasing the risk of a breakdown below the triangle. However, the overall trend remains upward.
Additionally, the RSI is trading below the mid-level, suggesting potential for further correction. A break above $3,430 would signal a strong upside move, while a break below $3,250 could indicate further downside before the next upward leg begins.