Gold: Range trade persists amid mixed drivers – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong describe Gold as consolidating after rebounding from 4510, with high Oil prices still complicating the inflation–Fed outlook. They argue that clearer easing in geopolitical risk, softer Oil and renewed dovish Fed pricing are needed for stronger upside momentum, highlighting support at 4510/4452 and resistance at 4670 and 4850/4860.

Consolidation phase with key levels in focus

"Gold rebounded after trading a low of 4510 last week."

"The sharp decline in oil prices is a relief to risk sentiment. That said, high oil prices continue to complicate inflation-Fed path and rates outlook – these can have implication on gold prices."

"A clearer easing in geopolitical risk, softer oil prices and renewed dovish Fed pricing would likely be needed for gold to regain stronger upside momentum."

"Mild bearish momentum on daily chart shows tentative signs of fading while rise in RSI moderated. Consolidation likely for now."

"Support at 4510 (recent low), 4452 (23.6% fibo). Resistance at 4670 (38.2% fibo retracement of Jan high to Mar low), 4850/60 levels (50 DMA, 50% fibo)."

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