XAUUSD came under heavy pressure dropping 284 percent to a three week low near 4300 as rising global bond yields weakened demand for the precious metal

The selloff comes as major economies face renewed concerns over inflation interest rates and geopolitical tensions Rising bond yields make non yielding assets such as gold less attractive to investors triggering increased selling pressure

Markets are now closely watching todays ADP Non Farm Employment report which could bring further volatility to EURUSD GBPUSD and gold ahead of Fridays highly anticipated US Non Farm Payrolls data

Meanwhile German Bund yields have surged to their highest levels in years adding to fears that tighter monetary conditions could persist The escalating Iran conflict and broader geopolitical uncertainty are also keeping investors on edge

For gold traders the key question is whether the 4300 area can hold as support A strong recovery could attract bargain buyers while continued pressure from rising yields and a stronger dollar could push XAUUSD even lower

The next major economic reports could therefore determine whether gold is preparing for a rebound or another sharp leg downward

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