Gold prices turned lower during Asian trading on Tuesday (August 18) after previously strengthening to around US$4,436 per troy ounce. Currently, XAU/USD is trading around US$4,402, down from an opening level of approximately US$4,417. This correction follows gains over the last few sessions; profit-taking emerged after prices failed to sustain momentum within the US$4,420–US$4,430 range.

From a technical perspective, the rejection at the daily high of around US$4,436 indicates that buyers lack the strength to push gold back to retest previous peaks. The decline toward US$4,400 also represents a critical psychological test. As long as this level holds, the correction can be viewed as post-rally consolidation; however, a decisive breakdown could intensify short-term selling pressure.

Fundamentally, gold is facing pressure from rising US bond yields. The 10-year Treasury yield climbed to around 4.73%, while the 30-year yield briefly hit approximately 5.31%—a near two-decade high. Higher yields enhance the appeal of bonds over non-yielding gold, contributing to the metal's loss of momentum during the Asian session.

However, the fundamental outlook for gold

However, the fundamental outlook for gold has not turned entirely bearish. The US dollar remains near multi-month lows after weak labor, inflation, and retail sales data led the market to price in a roughly 65% ​​probability that the Federal Reserve will hold interest rates steady in September. US-Iran tensions continue to support safe-haven demand following signals of a more offensive military stance from Tehran, although a conflict-driven spike in oil prices could reignite inflation risks and push yields higher.

Newsmaker Analysis: The US$4,400 level is key for today's Asian session. If prices fail to hold and break below this mark, corrective pressure could drive gold toward the US$4,385–US$4,370 range, and potentially down to US$4,350 should selling intensify. Conversely, if buyers can hold the US$4,400 level and push the price back above US$4,420, gold has the potential to test the US$4,436–US$4,450 range. A breakout above US$4,450 would further strengthen bullish momentum. (asd)*