Yuxuan Tang, head of rates and FX strategy for JP Morgan Private Bank Asia, says
gold remains vulnerable after the recent selloff because liquidity is thin and
interest rates have further upside. She expects the Fed to deliver hikes in
December and again in Q1 2027, driving the 10-year U.S. Treasury yield to a
mid‑year peak around 5.25–5.50%, above the current just‑above‑5% level. Stronger
yields weaken demand for zero‑yield gold; technical support is scant below
$4,000/oz. Tang adds that once the Fed ends tightening, gold could stage a
strong rebound late next year given its hedge appeal during economic and
geopolitical stress, but with markets now pricing a higher, later yield peak the
timing of a durable bottom is uncertain.
