Yuxuan Tang, head of rates and foreign-exchange strategy for Asia at JPMorgan Private Bank, warns gold faces further downside risk due to thin liquidity and rising interest rates. She expects the Federal Reserve to continue hiking through early 2027, pushing 10-year Treasury yields toward a peak of 5.25% to 5.5%. Gold, which dipped below $4,000 an ounce recently, lacks technical support at current levels and remains fragile.
Tang notes that bullion could rebound strongly once tightening ends, citing its role as a hedge during volatile events. Central bank buying has supported prices above $4,000, but investor caution and low liquidity may amplify price swings. JPMorgan forecasts gold reaching $4,500 by mid-2027 and $5,000 by year-end.
Meanwhile, market sentiment is divided, with Amundi expecting a rebound and Standard Chartered warning of further declines if support at $3,886 fails.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing