Gold: Bearish bias holds below 4300 resistance - OCBC
OCBC strategists Sim Moh Siong and Christopher Wong note that Gold remains under near-term pressure after briefly slipping below 4250 before rebounding modestly.
OCBC strategists Sim Moh Siong and Christopher Wong have highlighted a bearish bias for gold, as it remains under pressure below the 4300 resistance level. Recent factors contributing to this sentiment include rising oil prices, strong US data, and hawkish comments from the Federal Reserve. These factors have reinforced rate-hike expectations, which have in turn supported the US Dollar.
The strategists note that further gains in yields could maintain the bearish bias, while softer energy prices or a weaker Dollar might help stabilize gold prices. The key near-term resistance zone is identified as 4300–4354. Gold briefly slipped below 4250 before recovering slightly overnight. Analysts point out that oil and the response from interest rates remain the main swing factors affecting gold.
A potential easing in energy prices or the US Dollar could assist gold in stabilizing, whereas a further increase in yields would sustain the bearish near-term bias. The article emphasizes monitoring price action, as a successful move above short-term key levels would be crucial. The immediate resistance area is noted at 4300–4354, with support levels at 4200 and 4000. On the upside, resistance is seen at 4400 and 4460 levels.
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