Gold Sees Higher Ground at $4,535 Amid Easing Yields and Oil Prices

Mirae Asset's head of commodities, Praveen Singh, sees gold potentially reaching $4,535 as US Treasury yields and oil prices ease. This prediction comes after gold rebounded 2.2% on September 17 following a sharp fall the previous day due to the Federal Reserve's hawkish rate hike.

The Fed's decision to raise the federal funds target range by 25 basis points to 3.75-4.00% was seen as hawkish, causing the Dollar Index to surge 0.6% to 100.35 on September 16, but it eased slightly on Thursday. The decline in US yields and oil prices has relieved pressure on gold.

Praveen Singh notes that gold's recovery is driven primarily by the drop in US yields and oil prices. With the Federal Reserve likely to adapt a 'wait and watch' approach to assess incoming data, the probability of a December rate hike may decrease if oil prices fall sharply by then.