Gold Price Forecast: Dow Ratio Warns of More Downside as Yields Rise - FXEmpire

AI desk brief

Gold (XAU) is under pressure as U.S. Treasury yields rebound from the 5% area and the market keeps some probability of another Fed hike on the table. The article flags $3,900-$4,000 as key support; a break below that band would open deeper downside, while the author still sees the longer-term structure as bullish.

The near-term bearish case is built on higher yields, strong growth, and sticky inflation, with the market awaiting Q3 GDP and PCE data for confirmation. Ratio analysis is used to argue that the Dow/gold and S&P 500/gold relationships still point to more downside in gold before a durable bottom forms, with the Dow/gold ratio seen heading toward 14.50-15 and the S&P 500/gold ratio toward 2.0.