FXStreet reports that gold fell a sixth consecutive session on Friday, closing at $1764.16 to lose 6.0% on the week, and strategists at OCBC Bank believe that the bearish pressure could take a breather this week and give some respite to the yellow metal.
“Bearish pressure may ebb this week - not because we favour the precious metal, but our valuation model suggests gold is currently trading in the middle of its fair-value range after last week’s sharp selloff. Regardless, our bearish call from two weeks ago has played out nicely.”
“Global assets now look like they are beginning to move in tandem - the decline in Treasury breakeven yields and gold price reinforce the ‘transitory’ inflation idea, while prospects of rate normalization have dampened riskier assets like equities and commodities.”
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