Gold futures climbed in early Asian trading Tuesday, though the precious metal has pulled back from the psychologically significant $5,000 an ounce milestone. Spot gold rose 0.5% to $4,349.71 an ounce, marking a modest recovery after recent pressure from rising Treasury yields.

United Overseas Bank's research team cited in its third-quarter outlook report that climbing energy prices are fueling inflation concerns, pushing investors toward assets offering better yields. The firm notes that elevated opportunity costs in today's high-yield environment may necessitate further price consolidation before gold can sustainably test higher levels.

Despite near-term headwinds, UOB maintains its long-term bullish stance on gold. The bank forecasts prices averaging $4,600 an ounce in the third quarter, rising to $4,800 in the fourth quarter, before reaching $5,000 in early next year. This projection reflects confidence that inflationary pressures will ultimately support precious metal demand.

Current market dynamics suggest gold is caught between competing forces: safe-haven appeal amid energy-driven inflation versus opportunity cost considerations in a rising rate environment. The metal's performance will likely hinge on whether central banks maintain their accommodative posture or accelerate tightening measures.