Gold: Watch price action - OCBC

Prices of precious metals - Gold and silver pushed through recent highs on prospects of Fed cutting rates soon. Gold last seen at 3479 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Bullish momentum on daily chart intact

"Gold pushed above 3500 briefly this morning, before easing below. We would be watching how price action behaves given that the room above 3500 is uncharted. The last time when Gold traded 3500 was during intra-day in Apr-2025. We would be keen to see if Gold manages to make a daily close above that level as that could lend some momentum to Gold."

"More broadly, we still look for Gold prices to trend higher over time but expect the pace of gains to moderate vs. the sharp rally seen earlier this year. The drivers that had driven Gold prices sharply higher, including geopolitics and tariff uncertainties have somewhat subsided a bit. Nevertheless, there is still risk of fresh geopolitical risks and policy uncertainties returning, and that would lend a kicker to Gold."

"Bullish momentum on daily chart intact while RSI rose into overbought conditions. Watch price action. Immediate resistance at 3500/10 levels. Decisive close could point to further upside towards 3750, 3890 levels. Support at 3380 (21 DMA), 3355 (50 DMA)."