Gold to Face Further Pain as 10-Year Yields Hit 5.15%, Warns FOREX.com’s Razaqzada

Gold is under pressure as bond yields climb to their highest levels in two decades. FOREX.com analyst Fawad Razaqzada notes that elevated oil prices are intensifying inflation concerns, leading markets to price in larger Federal Reserve rate hikes. The CME FedWatch Tool shows a 56% chance of a 50-basis-point December increase, pushing U.S. 10-year Treasury yields to 5.15%. Razaqzada states that rising yields typically weigh on gold by raising the opportunity cost of holding the zero-yield asset, with potential downside targets near 4235. He adds that eroding confidence in the Fed could revive dollar-debasement flows supportive for gold, yet immediate resistance lies at 4300-4325, followed by 4400.