Gold rebounded 1.6% last week and traded mostly above the $1700 level since Tuesday. The yellow metal will likely take its cue from the FOMC meeting this week. A strong intent of dovishness from the Fed could send Treasury yields lower and gold prices higher, per OCBC Bank.
Key quotes
“Our model points to a fair value of gold at $1640-$1740, based on current inputs of the DXY and US 10Y yields.”
“A strong show of dovish intent by Powell and team could send Treasury yields lower and lift gold prices higher.”
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