Gold Retreats as Oil Spike Above $100, Analysts Say Risks Are Two-Way
Gold has fallen back toward $4,040-4,050 after briefly trading above $4,160, driven by Brent crude's surge past $100 and a stronger dollar and higher yields, according to OCBC analysts.
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OCBC analysts Sim Moh Siong and Christopher Wong note that gold has given back gains after a brief spike above $4,160, retreating to the $4,040-4,050 range.
The pullback coincides with Brent crude oil surging above $100 per barrel, which pushed the dollar and U.S. Treasury yields higher, creating headwinds for the precious metal. The analysts describe the risk profile for gold as "two-way" given the conflicting forces from geopolitical uncertainty and tighter financial conditions.
Source: FXStreet Forex News