FXStreet reports that strategists at OCBC Bank note that the U.S. Treasury yields have started to rebound higher following their April decline, and if that trend continues the downward pressure on gold could intensify.

“The recent rise in US Treasury yields and firming of asset prices globally (commodities included) have started to manifest in gold prices.” 

“Our model suggests gold currently has a fair value of $1670-$1770/oz, which may continue falling if Treasury yields continue to climb.”

“A strong nonfarm payroll figure (>1 million) will probably solidify the risk-on sentiment and send commodities soaring. Gold will likely dip in that scenario. The USD may likely strengthen on the strong numbers but is unlikely to create a dent on prices.”