Short-term pressure does not alter the medium- to long-term outlGOLD (US$/OZ)TVC:GOLDHenry_ColvettDespite the significant pullback in gold prices on Tuesday, market sentiment has not shifted to outright pessimism. While the steepening yield curve and rising oil prices are the immediate drivers of gold's recent weakness, the overall outlook remains bullish, with room for further gains. The market may require a period of consolidation before buying interest is reignited. There is a logical basis for this assessment. On one hand, fiscal and debt pressures facing major global economies persist; the surge in long-term interest rates reflects market concerns regarding future inflation and debt sustainability—worries that ultimately reinforce gold's status as a hedge. On the other hand, should the US-Iran conflict become protracted, energy supply shocks and global supply chain disruptions would continue, while the potential for real interest rates to rise could be constrained by an economic slowdown. Currently, the US Dollar Index is range-bound, and the Euro has even climbed to a two-month high, indicating that the market is still digesting expectations of a dovish pivot by the Federal Reserve.