Gold: Near-term pressure versus structural support – OCBC
OCBC’s Christopher Wong reports that Gold has come under pressure as rising global yields and renewed inflation risks reduce expectations for near-term rate cuts, prompting ETF outflows and stress-driven liquidation.

OCBC’s Christopher Wong reports that Gold has come under pressure as rising global yields and renewed inflation risks reduce expectations for near-term rate cuts, prompting ETF outflows and stress-driven liquidation. Despite this, he argues the broader structural backdrop remains supportive and still expects Gold to resume its medium-term uptrend, though trading is likely to remain choppy in the near term.

Higher yields weigh on Gold prices

"Gold prices fell sharply as rising global yields and renewed inflation risks—driven by higher energy prices—reduced expectations for near-term rate cuts."

"Investors continued to pare back gold-backed ETF holdings, adding to the downside."

"The metal has also been prone to bouts of liquidation during periods of market stress, even as geopolitical uncertainties remain elevated."

"Despite the near-term pressure, the broader structural backdrop remains supportive."

"We still expect gold to resume its medium-term uptrend, though prices may struggle for sustained momentum in the near term, with trading likely to stay choppy."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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