According to OCBC’s Christopher Wong, gold prices have shown tentative signs of stabilisation, supported by softer U.S. Treasury yields and lower oil prices as markets priced in some hope of progress on US–Iran diplomacy [1]. However, the move was not characterized as a clean risk-on rebound for bullion [1]. Gold remains caught between two opposing forces: while lower yields and oil prices are supportive, any renewed spike in crude oil could quickly revive inflation and Federal Reserve tightening concerns, which would lift yields and the U.S. dollar, thereby capping gold's upside potential [1].
The bank notes that bearish momentum for gold is fading, but expects two-way trading with upside capped unless oil and yields ease further [1]. Technical analysis highlights support levels at 4452 (23.6% Fibonacci retracement of 2026 high to low) and 4365 (200-day moving average), with resistance at 4670/78 (50-day moving average, 38.2% Fibonacci) and 4800/50 (50% Fibonacci, 100-day moving average) [1].
Currently, the near-term bias for gold is less bearish than earlier in the week, but conviction on direction remains low, suggesting that two-way trades are likely in the interim [1]. The rise in the Relative Strength Index (RSI) has also moderated, further indicating a lack of strong directional momentum [1].
No specific market reactions, forward-looking statements, or analyst opinions beyond OCBC’s technical outlook were provided in the source article [1].
CONCLUSION
Gold is experiencing tentative stabilisation, supported by softer yields and oil prices, but remains range-bound due to persistent inflation and Fed policy risks. Upside appears capped unless there is a more decisive easing in oil and yields. Technical levels suggest two-way trading is likely in the near term.