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Gold (XAU/USD) slumped last week, hurt by the rising Treasury yield environment. Howie Lee, an Economist at OCBC Bank, expects the demand for the yellow metal to continue waning.

Key quotes

“The rising Treasury yield, propelled by robust economic data and an appetite for taking on risk, has sent the demand for gold falling continuously.”  

“Gold ETF holdings have now fallen three months in the last four and this trend is set to continue if yields continue inching higher.”  

“We turn bearish gold in the short-term and neutral gold in the medium to long-term.”