OCBC strategists Sim Moh Siong and Christopher Wong emphasize that gold remains closely linked to risk proxies, with recent geopolitical developments over the weekend negatively impacting risk appetite and causing spillover effects onto gold prices [1]. Gold reached a high of 4,889 following earlier news that the Strait of Hormuz was open, but subsequently retraced into the New York close [1]. The strategists note that bullish momentum on the daily chart is still intact, although the RSI is flat, suggesting a period of consolidation is likely [1].
Key technical levels highlighted include resistance at 4,850 (50% Fibonacci retracement of the 2026 high to low) and 4,900 (50 DMA), while support is seen at 4,714 (100 DMA) and 4,650/70 (21, 38.2% Fibonacci) [1]. OCBC expects gold's near-term direction to be influenced by broader risk sentiment, particularly dependent on the outcome of ceasefire talks [1].
The strategists advocate a dip-buying approach, preferring to accumulate gold during pullbacks rather than chasing rallies, given the current environment of geopolitical uncertainty and risk sentiment fluctuations [1].
CONCLUSION
OCBC strategists recommend buying gold on dips as geopolitical events continue to influence risk sentiment and price action. Technical resistance and support levels are clearly defined, and the near-term outlook depends on developments in ceasefire negotiations. The market is expected to consolidate, with bullish momentum intact but caution advised.