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Gold’s post-payroll rebound fades as long-end yields stay elevated

OCBC says a sustained recovery likely depends on long-end and real yields falling, not just reduced Fed hike risk, with elevated oil complicating inflation worries.

Reported · Written up by our desk · Precious Metals

OCBC’s Christopher Wong said Gold’s brief rebound after US payroll data faded as long-end US yields remained elevated and the US dollar stayed firm, limiting follow-through in the metal’s move, according to FXStreet.

Wong argued that simply seeing less risk of Fed hikes was not enough for a sustained rally. Instead, he said gold needs a clearer and more lasting decline in long-end and real yields, alongside some easing in oil-driven inflation concerns.

He added that elevated oil prices continue to complicate the outlook by keeping inflation and term premium concerns alive, reinforcing the view that yields must turn before gold can build a durable recovery.

FXStreet also noted Wong’s technical perspective that mild bearish momentum on the daily chart remains intact, with moving-average compression potentially preceding a breakout trade.

Latest closeGold $4,172.10 ▼0.7%

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