Gold Prices Rebound on Easing Inflation Pressures

Gold prices have rebounded after the release of the United States' Consumer Price Index (CPI), which showed inflation pressures easing. According to OCBC strategist Christopher Wong, this decrease in inflation pressure has reduced the burden on bullion. The US 10-year Treasury yields also eased back from near-5% highs, while oil prices retreated from earlier peaks.

Wong notes that despite this recovery, elevated real yields remain a hurdle for gold in the short term. However, he sees stronger investment demand and central-bank buying as a cushion to support gold prices.

The OCBC strategist reiterates their constructive medium-term view on gold, with FOMC guidance being crucial for determining whether the current recovery can extend or if interest rates will continue to weigh on bullion.