Pullback risk with higher yields and Oil – OCBC

OCBC’s Sim Moh Siong and Christopher Wong note that Gold’s rebound has lost momentum as renewed Oil gains and higher long-end US yields revive inflation concerns. Daily charts show fading bullish momentum and a lower Relative Strength Index (RSI) from near overbought levels. The strategist sees scope for near-term consolidation or pullback unless yields stabilise or investment demand improves, which would be needed for the Gold rally to regain traction.

Rebound stalls as yields stay elevated

“Gold’s rebound has lost some momentum as the renewed rise in oil prices added to pressure from higher long-end US yields.”

“Firmer crude has brought…

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