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HSBC, OCBC predictions for Gold: Buy the dip

Gold prices have fluctuated significantly this 2026 so far, reaching an all-time high at almost $5,600 per troy ounce at the end of January, and then correcting to a low of $4,100 in March. As the market consolidates around the $4,800 mark, analysts are weighing short-term pressures against long-term structural tailwinds to determine the precious metal's next major move.

HSBC: Weaker US Dollar should support Gold in the long term

Strategists at HSBC note that Gold’s pullback this year responds to a strengthening US Dollar and rising yields. While they acknowledge that near-term price action is heavily influenced by immediate news headlines related to the war in the Middle East, they maintain a constructive outlook for Gold based on continued central bank demand and potential US Dollar weakness.

Over the longer term, we still see a soft USD, which should be supportive for Gold (...) A post-conflict environment could allow Gold to maintain upward momentum, underpinned by geopolitical risk, economic policy uncertainty, potential USD weakness, shifts in the global order, and ongoing central bank demand.

OCBC: Buy the dip rather than chasing rallies

OCBC strategists Sim Moh Siong and Christopher Wong say Gold remains tightly linked to risk proxies. They anticipate a period of consolidation as the market reacts to ceasefire negotiations between the US and Iran, suggesting a cautious but opportunistic approach to the current price levels rather than aggressive buying.

This underscores our take on buying on dip (instead of chasing longs) in current environment.

What’s next for Gold?

The outlook from these banking experts suggests that while Gold faces immediate resistance from a strong US Dollar and is heavily dependent on headlines coming from the Iran war, the metal’s uptrend should remain supported by structural factors.

While market movements will be dictated by headline risks in the short term, potential dollar weakness and central bank demand will eventually provide a floor for the metal.

In summary, the experts lean toward a "buy the dip" strategy. They expect Gold to maintain its upward momentum in a post-conflict environment, provided that investment demand remains steady and the anticipated softening of the US Dollar materializes later in the year.

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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