Analysts Turn More Bearish on Gold as Yields and Dollar Rise

Analysts are taking a more bearish short-term view of gold, pointing to rising bond yields and a stronger U.S. dollar as pressures on the metal. Inflation concerns and expectations of a potentially larger Federal Reserve rate increase are adding to the headwinds.

Analysts also flagged the possibility that price weakness could prompt exchange-traded fund investors to sell gold. At the same time, central-bank bullion buying and resilient ETF demand were identified as factors that may limit a correction.

The outlook combines those potential sources of support with continued concern about yields, the dollar and inflation.