Gold plunged to its lowest level since November 2025 on Thursday, June 11, hitting $4,023.95 intraday before recovering slightly to $4,105 per ounce. The metal is down nearly 5% from early June highs after breaking critical technical support at the $4,300 200-day moving average. May CPI data triggered the selloff, with headline inflation printing at 4.2% year-over-year and core at 2.9%, keeping the Federal Reserve in restrictive mode and lifting real Treasury yields. The non-yielding gold faces mounting pressure as the stronger dollar compounds losses, driven by oil prices above $112 per barrel sustaining inflationary pressures. Technical analysts note the breakdown of the $4,281-$4,367 support zone that held since October 2025 now signals further downside risk. The psychological $4,000 level is the immediate support, with analysts targeting $3,440 based on Fibonacci extensions. Traders, brokers, and gold-exposed portfolios should prepare for continued volatility as the Fed maintains its hawkish stance.
FXnCO Insight
Real yields rising alongside a firm dollar create a hostile environment for gold; monitor the $4,000 level closely for breakdown acceleration toward $3,440.
Source: Finance Magnates