Gold's recent rebound has stalled as gains in oil prices and rising long-term US Treasury yields have reignited concerns over inflation, according to FX Street. These factors have weighed on gold’s appeal as a safe-haven asset, putting pressure on its price momentum.
Technical indicators support this weakening trend, with daily charts showing fading bullish momentum and a declining Relative Strength Index (RSI) moving down from near overbought levels, FX Street reported. This shift suggests that the upward momentum for gold may be losing steam in the near term.
For Japanese investors, this dynamic is particularly relevant as fluctuations in commodity prices and US yields can influence the yen and domestic equity markets, highlighting the interconnectedness of global inflation expectations and asset performance.