Gold: Slight upside risk with fragile ceasefire – OCBC
|OCBC strategists Sim Moh Siong and Christopher Wong report Gold has rebounded in choppy trade on a fragile US–Iran ceasefire and direct Israel–Lebanon talks. With US nominal and real yields falling and risk sentiment improving, the bank sees risks to Gold prices somewhat skewed to the upside. Key resistance is flagged around 4850, 4915 and 5023, with support at 4670 and 4250.
Ceasefire and yields support upside bias
"Gold rebounded in choppy trade, reflecting the fragile ceasefire deal between US and Iran as well as direct talks between Israel and Lebanon."
"While geopolitical headlines can swing both ways, there is some bias towards an improved risk sentiment, with most asset classes including equities, high-beta FX and gold trading in synchronous fashion."
"Overnight, both US nominal and real yields also fell and this can be supportive of gold prices."
"The next leg for gold from here depends on whether the ceasefire holds and whether lower oil prices revives room for dovish Fed repricing."
"Next resistance at 4850 levels (50% fibo retracement of 2026 high to low), 4915 (50 DMA) and 5023 levels"
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.