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Gold rebound loses momentum as long-end US yields revive inflation fears
OCBC said gold is caught between a still supportive Fed backdrop, and renewed pressure from oil and higher long-end yields, with consolidation or a pullback possible if yields stabilize or investment demand improves.
OCBC strategists Sim Moh Siong and Christopher Wong said gold’s rebound has started to lose momentum, citing renewed gains in oil and higher long-end US yields that revive inflation concerns.
They pointed to fading bullish signals on daily charts, with the relative strength index moving lower from near overbought levels, and noted the US dollar was comparatively steady, providing little extra support.
OCBC warned that without yields stabilizing or investment demand improving, the metal may see near-term consolidation or a pullback. The firm said gold sits around the 4,365 area, with bullish momentum still intact but showing tentative signs of fading.
In the note, OCBC also suggested gold is effectively caught between a more supportive Fed backdrop and renewed pressure from oil and yields, while the strategist held that investment demand would be needed to restore the rally’s traction.
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