Gold Price Analysis: XAU/USD set to move lower in the near-term – OCBC

Gold fell back below the $1900 last week and a weak US CPI print this week may usher the yellow metal down further, as reported by OCBC Bank. 

First positive inflows into gold ETFs last month

“Unsurprisingly, gold recorded its best monthly price gain YTD in May, rising 7.8% last month to close above $1900 on 31 May. The first few days of June, however, has been less encouraging, with gold falling back below the $1900 level.” 

“Total known gold ETF holdings rose 1.58mil oz in May, the first positive inflow into this space in three months.”

“With breakeven yields staying stagnant, we continue to see gold as trading too rich and expect it to continue correcting this week.”