Gold: Pullback risk with higher yields and Oil – OCBC
OCBC’s Sim Moh Siong and Christopher Wong note that Gold’s rebound has lost momentum as renewed Oil gains and higher long-end US yields revive inflation concerns. Daily charts show fading bullish momentum and a lower Relative Strength Index (RSI) from near overbought levels.
OCBC analysts Sim Moh Siong and Christopher Wong report that gold's upward momentum has slowed due to rising oil prices and higher long-term US yields, which are reigniting inflation concerns. Daily charts indicate weakening bullish momentum and a lower Relative Strength Index (RSI) nearing overbought territory. The strategist suggests near-term consolidation or a potential pullback unless yields stabilize or investment demand increases, which would be crucial for gold to resume its rally.
Gold's recent rebound above $4,350 during the early European session has been met with some resistance, as the dollar remains relatively stable, providing limited support. For gold to regain its upward trajectory, either oil or yields need to show signs of steadying, or there must be a stronger surge in investment demand. Currently, gold is trading at around $4,365.
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