🚨 Gold Under Pressure: Inflation Shock Weighs on Safe-Haven Demand
Gold is facing renewed selling pressure as rising oil-driven inflation keeps real interest rates elevated, increasing the cost of holding non-yielding assets like bullion. Analysts at TD Securities say the macro backdrop is limiting upside momentum for the metal.
• High Real Rates Hurt Gold – Sticky inflation may force policymakers to stay restrictive longer, reducing gold’s appeal.
• Weak Institutional Demand – TD notes softer flows from institutions, ETFs, and some central banks since the conflict began.
• Key Support Watched – Major technical support is seen near the 200-day moving average around $4,258, while year-end recovery potential remains if oil stabilizes.
📊 Insight: Gold loves uncertainty—but when inflation lifts yields and delays rate cuts, traders often choose cash and the dollar first. Near-term pressure can continue until inflation cools.
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