Gold Price Forecast: XAU/USD Eyes $4,112 as China Buying Clashes With 5.3% Yields - FXLeaders

AI desk brief

Spot gold is trading near $4,144, with $4,112 flagged as key near-term support; a break there opens $4,070 and then $4,021, while resistance sits at $4,154-$4,161 and $4,179. The note is tactically bearish below the 4,161-4,179 area, but says the medium-term backdrop remains constructive given official-sector demand.

China extended its gold-buying streak to 23 straight months, lifting reserves to 77.47 million troy ounces from 76.73 million in August. That structural bid is being offset in the short run by a still-high 10-year U.S. Treasury yield around 5.30% and the market’s continued expectation of restrictive Fed policy, even as October hike odds have fallen to roughly 19-21%.