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Gold slides toward 4,000 as oil jump lifts yields and inflation fears

OCBC points to renewed US Iran tensions pushing oil higher, which has helped lift US Treasury yields and revived inflation concerns.

Reported · Written up by our desk · Major Pairs

Gold prices fell toward the 4,000 level after renewed US Iran tensions drove oil sharply higher, reviving inflation concerns and lifting US Treasury yields, according to OCBC strategists Sim Moh Siong and Christopher Wong.

They said the combination of higher yields and hawkish signals from Fed Governor Christopher Waller is weighing on gold’s near term outlook, especially if both oil and rates stay elevated.

OCBC added that gold could stabilize if oil pulls back or if US CPI inflation moderates, with support seen around 3,940 to 3,960 and resistance near 4,110.

The strategists also flagged upcoming US CPI data and Fed Chair Jerome Powell’s appearance before the House Financial Services committee as key catalysts for gold in the near term.

Latest closeGold $4,011.00 ▼2.3%

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