Interestingly, Treasury yields are moving lower in today’s trading session. The bond market has calmed down, and some traders are ready to buy U.S. bonds, betting that Fed will control inflation. The yield of 2-year Treasuries declined towards the 4.75% level, while the yield of 10-year Treasuries pulled back towards the 4.96% level. I’d note that the pullback in Treasury yields did not provide any support to gold markets in today’s trading session.

U.S. dollar moved higher against a broad basket of currencies as traders ignored the pullback in Treasury yields and focused on hawkish Fed policy outlook. Stronger dollar put pressure on gold markets today.

The nearest support level for gold is located in the $4300 – $4320 range. If gold pulls back below the $4300 level, it will head towards recent lows near the $4250 level. A move below $4250 will open the way to the test of the support at $4160 – $4180.

On the upside, gold needs to climb above the $4400 level to have a chance to gain upside momentum in the near term. In this case, gold will head towards the resistance at $4480 – $4500.