Gold: Buy dips with geopolitical support – OCBC
|OCBC strategists Sim Moh Siong and Christopher Wong note Gold steadied after an early stumble and remains underpinned by unresolved geopolitical risks and structural demand. They highlight intact bullish daily momentum, nearby support and resistance levels, and ongoing central bank diversification flows. OCBC prefers buying pullbacks rather than chasing strength, with near-term direction guided by ceasefire headlines and broader risk sentiment.
Structural demand and levels guide strategy
"Gold steadied after an early stumble. With geopolitics unresolved, structural support holds. Prefer buying pullbacks over chasing strength as markets take cues from ceasefire headlines and broader risk sentiment."
"Gold’s early decline to 4645 was partially retraced into NY hours. Last seen at 4720 levels. Bullish momentum on daily chart intact while rise in RSI moderated. 2-way risks likely."
"Support at 4670 (21, 100 DMAs, 38.2% fibo). Resistance at 4850 levels (50% fibo retracement of 2026 high to low), 4915 (50 DMA)."
"While no-deal over the weekend had dented sentiment, gold remains supported by structural drivers. Central bank demand, though uneven on a monthto-month basis, continues to reflect broader diversification efforts, and gold’s role as a hedge against geopolitical risk and policy uncertainty remains relevant within diversified portfolios."
"Hence, we remain in favour of buying on dip (instead of chasing longs) in current environment. Focus remains on how the ceasefire and discussion pan out, while near-term directional trade can still take cues from broader risk sentiment. "
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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