Gold stabilizes above $4,000 as bargain buying emerges after four-session slide

Key Facts

Amid sustained expectations of US interest rate hikes and a strong dollar, gold prices managed to hold above the $4,000 per ounce mark with a slight recovery, according to Kitco data. The bounce came after four consecutive sessions of decline, driven by bargain hunting that capitalized on the sharp sell-off.

Gold's stabilization comes despite the dollar index hovering near a one-year high and 10-year US Treasury yields around 4.4%, which typically reduces the metal's appeal as a safe-haven asset. Last week, Japan's inflation data and US leading indicators showed mixed readings, but markets are now awaiting Fed Governor Christopher Waller's speech scheduled for June 22 for clues on the rate path.

If hawkish signals persist, gold may face renewed pressure to test support at $4,000, while any easing in rate-hike expectations could open the door for a move toward $4,100.