Gold challenged ahead of FOMC

Gold trades near USD 4,300 after touching USD 4,252 on Monday, when technical selling briefly pushed the metal below USD 4,300. The pressure reflects a combination of rising oil prices, a US rate hike on Wednesday being almost fully priced in, a stronger dollar and, not least, long-end bond yields reaching levels last seen in 2023. Gold's ability to withstand these headwinds points to continued demand from less interest-rate-sensitive investors seeking protection against fiscal and geopolitical risks. A move back above USD 4,440 would in our opinion be needed to ease the current downside pressure/focus.