OCBC strategists Sim Moh Siong and Christopher Wong note that the gold price has stabilized after an early stumble and remains underpinned by unresolved geopolitical risks and structural demand. They highlight intact daily bullish momentum, nearby support and resistance levels, and continued central bank diversification flows. OCBC prefers to buy pullbacks rather than chase strength, with ceasefire headlines and broader risk sentiment guiding the near-term direction.
Structural demand and levels drive strategy
“Gold has steadied after an early stumble. Structural support remains as geopolitics remain unresolved. I would rather buy dips than chase strength as markets take cues from ceasefire headlines and broader risk sentiment.”
“Gold’s early decline to 4,645 was partially carried over to New York hours. Last seen at 4,720 levels. Bullish momentum on the daily chart remained unchanged, while RSI growth was moderate. Two-way risk likely.”
“Support at 4,670 (21, 100 DMA, 38.2% Fibo). Resistance at 4,850 (50% Fibo retracement from high to low in 2026), 4,915 (50 DMA).”
“While the lack of a deal over the weekend dampened sentiment, gold remains supported by structural factors. Central bank demand, while uneven on a monthly basis, continues to reflect broader diversification efforts, and gold’s role as a hedge against geopolitical risk and political uncertainty remains important for diversified portfolios.”
“Therefore, we remain in favor of buying on the dip (rather than chasing long positions) in current conditions. Our focus remains on how the ceasefire and discussion ends, while short-term directional trading may continue to be based on broader risk sentiment.”
(This article was created with the facilitate of an artificial intelligence tool and has been reviewed by an editor.)
