Gold prices remained capped on Tuesday, struggling to break above the 100-day Simple Moving Average at $4,328, according to FX Street. The precious metal faced headwinds from a robust US Dollar and elevated US bond yields, which collectively pressured gold's upside momentum.
These factors have limited gold's appeal as an alternative investment, as higher bond yields increase the opportunity cost of holding non-yielding assets like gold. The 100-day SMA acted as a technical barrier, preventing further price advances despite steady demand.
For Japanese investors, who often turn to gold as a hedge against currency fluctuations, the interplay between US monetary factors and the yen's performance remains crucial in shaping market dynamics across FX and equities.