OCBC strategists Sim Moh Siong and Christopher Wong note that Gold is drawing a safe‑haven bid as weekend strikes raise geopolitical risk premia. They see risks skewed to the upside, with resistance at 5,440 and 5,500 and support at 5,149 and 5,013. The sustainability of any rally hinges on whether conflict broadens and disrupts Oil, impacting global growth and inflation.
Upside risks as haven demand builds
“Escalation in Middle East reinforced demand for hedges against geopolitical tail risk, especially at a time when markets are already sensitive to global policy uncertainty.”
“The magnitude and sustainability of any rally in gold will depend on whether this is a prolonged and wider conflict, that undermines oil supply routes, and result in wider implication on global growth and inflation or that the tense situation can calm swiftly.”
“Gold was last seen at 5378 levels. Daily momentum turned mild bullish while RSI rose.”
“Risks skewed to the upside. Resistance at 5440, 5500 levels. Support at 5149, 5013 (21 DMA).”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/gold-safe-haven-bid-on-middle-east-risk-ocbc-202603021344
