JPMorgan Private Bank’s head of rates and foreign-exchange strategy for Asia, Yuxuan Tang, warns that gold still faces downside risk following its recent sell-off. In an interview, Tang cited thin liquidity and the potential for further interest rate hikes as key factors contributing to the metal’s vulnerability.
Tang emphasized that gold will likely find a solid bottom only when interest rates peak. The bank anticipates the Federal Reserve will raise rates in December and again in the first quarter of 2027, pushing yields on 10-year Treasuries to a peak of 5.25% to 5.5% by midyear. Currently, yields stand just above 5%.