Gold Price Forecast: XAU/USD retreats to lows near $4,110 amid rising yields and Oil prices

• Gold nears $4,100 as losses stretch into a fourth consecutive day.
• Higher US yields and oil prices underpin a recovery in the US Dollar.
• Sellers target the monthly range low near $4,070.

A modest rise in US Treasury yields, alongside higher oil prices, is helping the US Dollar (USD) recover slightly from Tuesday’s lows, leaving Gold (XAU/USD) lower for a fourth consecutive day on Wednesday. During Asian and European trading, the precious metal has consolidated just above $4,100, bringing the key support zone near $4,070 increasingly into focus.

Brent Oil has gained 1.6% so far on the day, with a US-Iran peace agreement still out of reach as the conflict enters its eighth month with no end in sight. Elevated oil prices continue to restrain risk appetite and weigh on demand for precious metals.

Hopes for another round of US-Iran negotiations rose after Pakistan’s army chief Asim Munir arrived in Tehran on Tuesday. However, Iran’s refusal to send enriched nuclear material abroad brought the talks to a halt. Earlier, on Monday, US Secretary of State Marco Rubio had said that securing a peace agreement with Iran was extremely difficult, affirming that the US would continue to exert economic pressure on the Islamic Republic.

Speaking to Iranian media, Iran’s Foreign Minister Abbas Araghchi said the Strait of Hormuz would stay closed until Washington agreed to Iran’s conditions.

Technical Analysis: Gold approaches the $4,070 range floor

Following a decline of nearly 1.3% over the past three trading days, XAU/USD remains subdued just below $4,120. Momentum readings reinforce the bearish picture: the 4-hour Relative Strength Index (14) sits in neutral-to-weak territory, while the MACD (12, 26, 9) remains below zero. Taken together, these indicators suggest that recovery attempts remain vulnerable.

For now, selling pressure is being held above the $4,100 area, marked by the intraday lows, while the floor of October’s trading range near $4,070 is coming into view. A break below that level will probably require fresh impetus for sellers, before they can target the late July and early August lows around the psychological $4,000 mark.

Any rebound, by contrast, is likely to encounter resistance in the $4,190–$4,200 zone, where advances have repeatedly stalled over recent days. Beyond that, the upper boundary of October’s range stands near $4,230.

(The technical analysis of this story was written with the help of an AI tool. Know more.)