Gold Price Prediction: XAU/USD cannot consolidate over $1680 as yields continue to rise

Gold reached a new daily high of $1685 following the start of the American session, but failed to hold above $1680 and fell to $1665. It continues to move sideways in a wide range between $1655 and $1685, hovering around $1670.

Despite increasing volatility, XAUUSD maintains its range. The consolidation occurs within the context of an ongoing bearish trend. A sustained recovery over $1680 might pave the way for a more significant bullish correction. In contrast, the loss of $1650 might initiate an acceleration initially targeting $1640.

Following the Federal Reserve's 75 basis point rate hike, US rates continue to rise on Thursday. The US 10-year yield is 3.70 percent, the highest level since February 2011, while the 2-year yield is 4.15 percent, the highest level since 2007. Higher yields are typically undesirable for gold bulls. In the current setting, negative news may be favorable for gold.

Earlier on Thursday, the Japanese government's involvement in the currency market depressed the dollar and aided the recovery of the XAU/USD pair. Nonetheless, the recovery was brief.