Gold: Rates shock weighs on metals – OCBC

OCBC’s Christopher Wong reports sharp corrections in Gold and Silver as higher yields and a stronger Dollar overwhelmed safe-haven demand. Silver underperformed after a prior high-beta rally linked to industrial metals and AI-related risk appetite. With Gold near 4,540, Wong sees near-term downside risks unless yields stabilise or Oil and geopolitical drivers ease.

Non-yielding metals face downside risks

"Gold and silver corrected sharply into the weekend, with silver bearing the brunt of the move after a week of price swings. Overnight, gold fell nearly 2.5% toward the US$4,500/oz area, while silver slumped around 9% to below US$76/oz at one point."

"The pressure point was rates, elevated oil prices revived inflation concerns, pushed yields and the USD higher, and overwhelmed the safe-haven bid for non-yielding metals."

"Gold last seen at 4540 levels. Mild bullish momentum on daily chart faded while RSI fell. Risks skewed to the downside in the interim. Support at 4452 (23.6% fibo retracement of 2026 high to low), 4340 (200 DMA). Resistance at 4670 (21 DMA, 38.2% fibo), 4730 (50 DMA) and 4850 levels (50% fibo)."

"Overall, the tone remains fragile unless yields stabilise or oil/geopolitical risks stop feeding into a more hawkish rates repricing. More constructive steps towards the reopening of Strait of Hormuz may help to provide support."

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