*Key Suppression Logic for the Short SellersGold vs US DollarPEPPERSTONE:XAUUSDAvaTaylor⚠️ **Key Suppression Logic for the Short Sellers** 💵 **1. The Fed's Hawkish Stance Remains Unchanged, Providing Clear Medium- to Long-Term Suppression** The Fed maintains its hawkish stance of "higher interest rates for longer," clearly stating that there will only be one rate cut in 2026, with the cut window extended to September-November. There has been no easing of core policies. In a high-interest-rate environment, the long-term investment value of gold is suppressed because gold is a non-interest-bearing asset. In a high-interest-rate environment, the opportunity cost of holding gold increases, and funds will flow more towards interest-bearing assets such as the US dollar and US Treasury bonds, thus suppressing medium- to long-term demand for gold. This core logic determines that this rebound is merely a correction after a sharp drop, not a new one-sided bull market. The upside potential for gold prices is strictly limited, making it difficult to break through previous historical highs, and even difficult to hold above the $4,600 mark. 📊 **2. High US Treasury Yields Increase Gold Holding Costs** The yield on the 10-year US Treasury bond remains high at 4.36%, rising by 8.34 basis points yesterday, the largest single-day increase in nearly a week, and there is potential for further upward movement. The high level of US Treasury yields has continuously reduced the attractiveness of gold as a non-interest-bearing asset. Some short-term speculative funds and medium- to long-term allocation funds have flowed from the gold market to the bond market, limiting the rebound potential of gold prices. If US Treasury yields break through the key resistance level of 4.40% next week, it will further increase the holding cost of gold, putting pressure on gold price rebounds and even leading to a pullback. 📢 I share trading strategies daily.