DBS Group Research’s Eugene Leow notes that Gold has stayed comparatively secure regardless of conflicting geopolitical news, together with a possible ceasefire and renewed threats across the Strait of Hormuz. He argues Gold stays in a corrective part as elevated US actual yields close to 2% cap restoration potential, and expects range-bound buying and selling round USD 4500-5000 with an upside bias, contingent on geopolitical developments and US Dollar weak point.
Corrective part below yield headwinds
“Overnight, gold remained relatively stable despite conflicting geopolitical crosscurrents, balancing reports of a potential 45-day ceasefire against President Trump’s escalating threats to force the reopening of the Strait of Hormuz. More broadly, however, the metal remains entrenched in a corrective phase, weighed down by the persistent pressure of elevated US 10-year real yields that continue to hover near the 2% threshold.”
“With the Middle East battle but to see any definitive de-escalation, the fast outlook suggests a interval of range-bound value motion with an upside skew.”
“However, any meaningful breakout remains heavily contingent on further geopolitical shifts.”
“In the near term, gold is likely to oscillate within the USD 4500-5000.”
“Until real yields undergo a meaningful retreat or the dollar exhibits sustained weakness, gold’s recovery potential will remain structurally constrained.”
(This article was created with the assistance of an Artificial Intelligence software and reviewed by an editor.)
