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.”