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Gold rose 0.7% to $1776.51/oz last Friday and is now trading at its highest since late February. Howie Lee, Economist at OCBC bank, turns neutral in the near term, however, he notes XAU/USD could suffer more pressure long-term as US Treasury yields resume their uptrend.  

See –  Gold Price Analysis: US Treasury yields and USD to ease later in the year, allowing for XAU/USD gains –  HSBC

Falling yields and dollar support gold’s rise

“The fall in US Treasury yields and the DXY index have supported gold’s elevated level.”

“Our model suggests a fair value range of $1671-$1775/oz for gold at current inputs, which means at current levels, gold is not too far off its fair value estimation.”

“We close our tactical recommendation of short gold and stay neutral on the precious metal in the short-term.”