OCBC strategists Sim Moh Siong and Christopher Wong report that gold steadied after an initial decline, with prices dropping to 4645 before partially recovering to 4720 during New York trading hours [1]. The strategists highlight that unresolved geopolitical risks and ongoing structural demand continue to underpin gold's price, despite a recent dent in sentiment due to the absence of a deal over the weekend [1].
Technical analysis from OCBC points to intact bullish daily momentum, though the rise in the Relative Strength Index (RSI) has moderated, indicating two-way risks in the near term [1]. Key support is identified at 4670, which aligns with the 21 and 100-day moving averages and the 38.2% Fibonacci retracement, while resistance levels are noted at 4850 (50% Fibonacci retracement of the 2026 high to low) and 4915 (50-day moving average) [1].
The strategists emphasize that central bank demand for gold, while uneven month-to-month, reflects broader diversification efforts and reinforces gold's role as a hedge against geopolitical risk and policy uncertainty within diversified portfolios [1]. OCBC recommends a strategy of buying on dips rather than chasing strength, with near-term direction likely to be influenced by ceasefire headlines and broader risk sentiment [1].
Overall, the focus remains on developments related to ceasefire discussions and how these may impact market sentiment and gold's near-term direction [1].
CONCLUSION
Gold remains supported by unresolved geopolitical risks and structural demand, with OCBC strategists favoring a buy-on-dip approach. Near-term price action is expected to be guided by ceasefire developments and broader risk sentiment, while technical levels provide key reference points for traders.