Gold struggles for momentum as surging US Treasury yields and a resilient Dollar weigh on the metal, overshadowing the cooling outlook for Federal Reserve interest rate hikes.
Gold is currently facing downward pressure as the US Dollar maintains its strength and long-end US Treasury yields continue to climb. According to OCBC strategists, these macroeconomic headwinds are offsetting the potential support usually provided by a pullback in market expectations for a Federal Reserve rate hike in October.
Gold is being weighed down by the combination of a strong US Dollar and rising long-end US Treasury yields, which act as headwinds for non-yielding assets.
Gold remains sluggish as rising long-end US Treasury yields and a firm US Dollar offset the recent pullback in Federal Reserve rate hike expectations. OCBC strategists warn that the precious metal faces continued vulnerability despite shifting market sentiment regarding central bank policy.
Gold is currently pressured by the resurgence of long-end US Treasury yields and the strength of the US Dollar, which collectively outweigh the impact of cooling Fed hike expectations.