Gold: Breakout holds as US payrolls loom – OCBC
OCBC’s Sim Moh Siong and Christopher Wong note Gold has retained most recent gains after breaking key resistance, supported by lower Oil, softer yields, central bank and ETF buying and technical factors.
OCBC analysts Sim Moh Siong and Christopher Wong report that gold has maintained most of its recent gains following a breakthrough of a key resistance level. This upward movement has been fueled by a combination of factors, including lower oil prices, declining yields, central bank and ETF purchases, and technical buying opportunities.
However, recent momentum has slowed as surging oil prices reignite inflation concerns and lift US Treasury yields. The upcoming US payroll report on Friday is expected to serve as a crucial test for the gold rally's future trajectory. If the report shows a weaker-than-expected outcome, it may fuel further reductions in Federal Reserve interest rate expectations, potentially sustaining the gold rally.
Conversely, a stronger-than-anticipated report could prompt some investors to take profits after the significant rally. Technical indicators suggest that daily momentum remains mildly bullish, with resistance levels at $4,333 (23.6% Fibonacci retracement of the 2026 high to low), $4,389 (100-day moving average), and support levels at $4,180 (50-day moving average) and $4,082 (21-day moving average).
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