Gold poised to test $4,535 resistance as yields retreat

Gold is expected to test key resistance levels around $4,520-$4,535 in the near term, supported by a moderation in global yields that typically makes the non-interest-bearing commodity more attractive to investors. The easing of bond yields reflects broader shifts in market expectations regarding interest rate trajectories, providing a tailwind for precious metals seeking fresh highs.

However, the outlook remains contingent on crude oil dynamics. Further increases in oil prices could weigh on gold's upside potential by strengthening the broader economic growth narrative and boosting real yields, which would diminish gold's relative appeal as an inflation hedge and safe-haven asset.

The yellow metal has maintained its appeal amid ongoing geopolitical tensions and economic uncertainties across global markets. For Indian investors, gold continues to serve as a portfolio diversifier and hedge against currency fluctuations, particularly given rupee volatility.

Market participants are closely monitoring the interplay between fixed-income yields, energy prices, and central bank policy signals. A sustained break above the $4,535 level could signal further upside potential, while a rejection at these levels may lead to consolidation or pullback toward lower support zones.