By Barbara Kollmeyer
After a lackluster year so far, the pressure is on for gold prices.
While stocks had a hard day on Friday, a selloff also hit gold. Strategists say that the fall may be far from over.
Gold futures (GC00) fell around 1% to $4,321.80 an ounce on Monday, paring a bigger drop from earlier. On Friday, gold slumped 3% for its largest one-day percentage drop since March 26, and fell a weekly 4.9%, the biggest such drop since the week ending March 20, according to Dow Jones Market Data.
Gold dipped below a key technical level as well on Friday - its 200-day moving average of $4,443.4 per ounce, noted Ed Yardeni, founder of Yardeni Research. &#34;We reckon the next support is at $4,000,&#34; he told clients in a note on Sunday. He added that they aren't giving up on their gold bullishness.
The veteran strategist has maintained that, once the Iran war is over, gold's rally should resume. He is targeting $5,500 by the end of this year and $10,000 by the end of the decade. Gold has dropped 0.2% this year after a rally of over 70% in 2025.
Gold's slump has followed Friday's better-than-expected May U.S. employment report, which reinforced the picture of a resilient economy that didn't need interest-rate cuts. As gold is a nonyielding asset, higher interest rates tend to work against it.
The yield on the 2-year Treasury note BX:TMUBMUSD10Y jumped to 4.160% on Friday - its highest yield since Feb. 24, 2025 - and was up to 4.178% on Monday.
The ICE Dollar Index DXY was hovering over 100 on Monday, and should that continue, it would be the highest close since March 30, when it closed at 100.51.
Ole Hansen, head of commodities strategy at Saxo Bank, said the technical picture has also gotten tougher for gold. He noted that investors had been piling in recently, with a sharp reduction in gross short positions - a bearish stance - combined with fresh buying of long or bullish positions.
That left gold &#34;increasingly vulnerable to a technical setback once key support levels gave way.&#34;
Silver's (SI00) losses were even bigger than gold's on Monday, with the commodity down 2.4% to $67.41 an ounce, after falling 6.5% on Friday, its biggest one-day percentage fall since May 15.
Read: The key to the upcoming Fed meeting? How Warsh reacts to all the hints of a rate hike.
-Barbara Kollmeyer
This content was created by MarketWatch, which is operated by Dow Jones &amp; Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
06-08-26 0714ET

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Gold experienced its worst selloff since March, dropping 3% on Friday and 4.9% for the week. Veteran strategist Ed Yardeni identifies $4,000 as the next support level, maintaining a bullish long-term target of $10,000 by decade's end. The decline follows strong U.S. employment data reinforcing expectations against interest rate cuts, boosting the dollar and Treasury yields. Silver also saw significant losses.

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Gold just had its worst selloff since March. A floor may be $4,000, says one veteran strategist