Guotai Asset Management sees precious metals, base metals pull back as Fed hike bets rise
TLT•Metals and mining equities pull back as Fed hike bets rise
Guotai Asset Management flagged a sharp pullback in precious metals and base-metals equities, tracking a slide in spot gold below USD 4,100.
- Brent crude near USD 100 revived energy-inflation fears, lifting July Fed hike odds to 36% from about 12% a week earlier.
- Rising US yields and a firmer dollar weighed on non-yielding gold; investors trimmed positions ahead of next week’s Fed decision.
- Gold fell despite escalating Middle East tensions, signaling a near-term fade in safe-haven premiums as rate expectations regained control.
Guotai sees cyclical pressure rather than a structural break
Guotai sees the move as cyclical pressure, not a structural break; central-bank buying and tight copper supply still underpin longer-term support.
