Gold extends recent fall as buyers lose more momentum, what's next?

The past week hasn't been a kind one for gold as what looked to be a potential upside break at the end of August turned into anything but that instead. For one, renewed tensions between the US and Iran isn't helping. But adding to that, the more hawkish signal from Fed chair Warsh in Jackson Hole also helped to put a dent on the precious metal as the dollar recovered.And against the backdrop of rising bond yields across the globe, gold is certainly feeling the heat again this week.So, what's next?The latest fall this week now sees price action fall back below the 100-day moving average (red line), seen at $4,360. Adding insult to injury, the drop also now breaks below the 50.0 Fib retracement level of the swing higher from July to August - seen at around $4,328.That suggests the directional bias for the precious metal to be more bearish, with buyers losing much - if not all - of the momentum from the August break higher.There are some bids in and around $4,300 that is keeping things at bay for now. But from a technical perspective, things are not looking good.Barring the 61.8 Fib retracement level at around $4,241, there isn't much else stopping gold from stumbling back towards the consolidative region around $4,000 to $4,130 level again.To make matters worse, the bond market is also piling on more hurt for the precious metal. 10-year yields in the US have now broken out to 4.80%, the highest since January last year. And that is also being driven by a rise in bond yields elsewhere, with Europe also seeing a breakout alongside Japan.It's not a singular story and purely a technical play.The fact that we're seeing a multitude of factors return could really do a number on gold here. That especially with US-Iran tensions keeping high, in turn driving a worse inflation outlook. And that in turn will drive higher rates as traders look to factor that into the central bank response down the road.As we get into September, things look like they might get worse for gold before it truly gets better again. This article was written by Justin Low at investinglive.com.