Gold ended last week higher, notching a gain of about 1%. After a sharp selloff the week before, the yellow metal consolidated in a tight range last week, largely trading from $1774 to $1792 and below the 100-DMA. Economists at OCBC Bank expect gold to continue facing further bearish pressure in the coming weeks.
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Gold faces selling pressure from prospects of tightening, firming risk sentiment and softening inflationary expectations
“Gold traded in a very tight range last week after the prior week’s selloff. Although having rebounded, gold has continued to trade below its 100D MA level.”
“We expect gold to resume its downward trend this week as risk sentiment firms and markets continue to look towards the prospects of tightening monetary conditions from the Fed.”