Gold Price Analysis: Sideway trend to continue a while longer – OCBC

Gold (XAU/USD) continues to trade sideways as the yellow metal mostly moved in a very tight range in January, hovering from $1825 to $1875. Howie Lee, Economist at OCBC Bank, expects gold to go on trending sideways.

Key quotes

“Gold bears are quick to pounce once levels exceed $1850 and the bulls look unconvinced as well, relinquishing their positions quickly.” 

“The rising Treasury yields continue to make a bull run in the gold market challenging. A widening spread between breakevens and nominal yields would be needed to give the bullish gold story legs to run higher. Until then, the precious metal may continue trending sideways.”