Gold: OCBC suggests buying on pullbacks amid geopolitical backing

Gold Market Outlook: Key Drivers and Strategic Insights

According to OCBC strategists Sim Moh Siong and Christopher Wong, gold prices have stabilized following an initial drop, supported by ongoing geopolitical tensions and persistent structural demand. They emphasize that bullish momentum remains present on the daily charts, with important support and resistance zones nearby, and note that central banks continue to diversify their reserves into gold. The strategists recommend buying during price pullbacks rather than pursuing upward surges, as short-term movements are likely to be influenced by developments in ceasefire negotiations and overall market risk appetite.

Structural Demand and Technical Levels Shape Gold Strategy

Gold recovered after an early dip, as unresolved geopolitical issues continue to provide a foundation for prices. The preferred approach is to accumulate on declines, rather than entering during rallies, as traders monitor headlines related to ceasefire talks and shifts in risk sentiment.

After dropping to 4645, gold partially rebounded during New York trading hours, recently trading near 4720. The daily chart still signals upward momentum, though the RSI's increase has slowed, suggesting that price swings in both directions are possible.

• Key support is identified at 4670, aligning with the 21- and 100-day moving averages and the 38.2% Fibonacci retracement.
• Resistance levels are seen at 4850 (the 50% Fibonacci retracement from the 2026 high to low) and at 4915, which corresponds to the 50-day moving average.

Although the absence of a weekend agreement dampened sentiment, gold remains underpinned by long-term factors. Central bank purchases, while fluctuating month to month, continue to reflect a broader trend toward diversification. Gold’s role as a hedge against geopolitical uncertainty and policy shifts remains significant for diversified investment portfolios.

As a result, the strategists maintain a preference for buying on dips in the current environment. Market participants should keep an eye on the progress of ceasefire discussions, as well as broader shifts in risk sentiment, which are likely to influence gold’s short-term direction.

(This article was produced with the assistance of artificial intelligence and reviewed by an editor.)