Gold Remains Steady Amid Geopolitical Uncertainty and Structural Demand
OCBC’s strategists, Sim Moh Siong and Christopher Wong, report that gold has stabilised following an initial decline, bolstered by ongoing geopolitical tensions and persistent structural demand. They point to sustained bullish daily momentum, along with identified support and resistance levels, compounded by continuous central bank diversification flows. OCBC suggests a strategy of buying on pullbacks rather than pursuing upward price movements, with immediate market directions being influenced by ceasefire updates and overall risk sentiment.
Guiding Strategy with Structural Demand and Critical Levels
Gold experienced a minor downturn, dropping to 4645 before partially rebounding in New York trading hours, now hovering around 4720. The daily chart indicates that bullish momentum remains intact, although the Relative Strength Index (RSI) has moderated, indicating that the market could face two-way risks.
Key support is observed at the 4670 mark, which aligns with the 21-day and 100-day moving averages and the 38.2% Fibonacci retracement level. Conversely, resistance is noted at around 4850, reflecting the 50% Fibonacci retracement from the 2026 high to low, and at 4915, where the 50-day moving average lies.
Despite the lack of resolution over the weekend impacting sentiment, gold is still underpinned by structural influences. While central bank demand fluctuates on a month-to-month basis, it highlights ongoing diversification efforts. Gold’s pivotal role as a hedge against geopolitical instability and policy uncertainty remains relevant in diversified investment portfolios.
Consequently, OCBC advocates for a buying strategy on dips rather than chasing long positions, particularly in the prevailing market conditions. Attention remains fixated on ceasefire developments and broader risk sentiment, which will continue to shape short-term trading directions.
(This article has been generated with the assistance of an Artificial Intelligence tool and reviewed for accuracy by an editor.)
