Gold edged higher in early Asian trading Monday, with spot prices rising 0.5% to $4,349.71 an ounce, according to market data cited by The Wall Street Journal.
The precious metal has retreated from the $5,000 a troy ounce level as Treasury yields climb amid higher inflation risk from elevated energy prices, according to a third-quarter outlook report from United Overseas Bank’s research team. The bank said further consolidation in gold prices could be necessary as investors weigh higher opportunity costs from the high-yield environment.
Still, UOB reiterated its long-term positive view on the precious metal, the research team said. The bank projected gold prices would average around $4,600 an ounce in the third quarter and $4,800 an ounce in the fourth quarter, before rising to $5,000 an ounce in the first quarter of 2027.
Gold has had a volatile year. The metal hit fresh records in January before retreating as bond yields have surged to multi-year highs against a backdrop of elevated energy prices and uncertainty around U.S.-Iran conflict.