Gold prices rebound near $4,174 amid falling US Treasury yields

Gold prices are showing signs of recovery, trading near the $4,174 level as market participants monitor key support and resistance zones. Analysts note that gold has maintained its position above the $4,000 threshold, with a critical support level identified around $4,146.

Several macroeconomic factors are influencing the precious metal's trajectory. A decline in US Treasury yields and a weakening US dollar have provided support for gold, reducing the opportunity cost of holding non-yielding assets. Additionally, geopolitical uncertainties and concerns regarding artificial intelligence stock valuations have increased demand for gold as a defensive safe-haven asset.

However, challenges remain. The market is closely watching the Federal Reserve's monetary policy and the potential for high interest rates to sustain a strong dollar, which could limit gold's upside. Technical resistance is currently positioned between $4,192 and $4,253. Meanwhile, the gold mining sector continues to face a correction, influenced by the Gold/Oil ratio and fluctuating mining costs.