Gold: Upside capped by real yields – UOB

According to UOB Global Economics & Markets Research, Gold spot eased to close at $4,157 per ounce after earlier trading as high as $4,219. Elevated real yields continue to limit bullion’s upside, leaving Gold softer despite broader macro uncertainty and strong moves in other commodities. The report underscores how higher US yields are constraining precious metals.

Bullion retreats from intraday highs

"Gold spot was softer at $4,156/oz as elevated real yields capped the bullion’s upside."

"Gold spot reversed earlier gains – which saw it trade as high as $4,219 /oz – to close 0.6% lower at $4,157/oz as elevated real yields continued to cap the bullion's upside."

"US headline PCE rose 0.3% m/m in Aug, in line with estimates, while the y/y rate fell to 3.4% from 3.7% in prior month. BEA methodology revisions improved the optics but did not materially alter the underlying inflation narrative."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)