Gold: Higher yields cap recovery prospects – OCBC
OCBC strategist Christopher Wong reports that Gold reversed lower after the FOMC as a stronger US Dollar (USD) and rising United States (US) yields weighed on sentiment, with the 2-year near 4.75% and the 10-year around 5%.
OCBC analyst Christopher Wong indicates that gold's recovery prospects may be hindered by higher yields following the FOMC. A stronger US Dollar and rising US yields pressured sentiment, with the 2-year yield nearing 4.75% and the 10-year around 5%. Despite the Fed outcome potentially not undermining gold's medium-term case, especially if US data softens, elevated yields and a stronger dollar may temporarily cap gold prices.
Gold retreated to 4250, with support near 4000 and 3940 (2026 low) and resistance at 4333 (100 DMA) and 4431 (21 DMA). Gold closed at 4262, showing mild bearish momentum and tentative signs of RSI moderation.
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