Gold Slides Toward Post-FOMC Lows as Treasury Yields and Rate Expectations Surge

Gold prices dropped back toward post-FOMC lows as hawkish Federal Reserve expectations and surging Treasury yields diminished demand for non-yielding bullion. After an initial drop toward $4,240 following the Fed's 25-basis-point rate hike to 3.75%-4.00%, gold rebounded roughly 1.5% before fresh selling forced prices down to $4,280 and pressured subsequent rallies. The metal now forms a descending triangle with lower highs below $4,400 and $4,360, exposing support toward $4,100. Despite headwinds from a firm dollar and elevated yields, UBS noted structural support from central bank reserve diversification.