Gold: Consolidation with key levels in focus – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong note that Gold has rebounded on softer US CPI and expectations of prolonged easy Fed policy, but the move remains measured after earlier volatile swings. They continue to see Gold in a consolidation regime, with two-way volatility tied to USD and real yields, and highlights 5090/5120 as resistance and 4960/4720 as key downside supports.

Range-bound trade and technical markers

"Gold rebounded on Friday after US CPI came in softer than expected, helping to keep Fed rate cut hopes alive."

"The broader narrative around a softer US labour market and headline CPI continues to support the view that Fed’s easy policy should stay for longer, in turn creating a conducive environment for gold."

"That said, the recovery in gold prices was measured rather than impulsive."

"We continue to see gold operating in a consolidation regime rather than a parabolic acceleration phase."

"A sustained break above 5090/5120 would still be required to reassert stronger bullish momentum."

"On the downside, support remains at 4960 (21 DMA), 4720 (38.2% retracement of August low to 2026 high)."

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